Biglari Holdings, the parent firm of the Steak n Shake restaurant chain and Maxim magazine has announced its further foray into insurance with the $300 million acquisition of California-based Pacific Specialty Insurance.
The deal, which also involves the purchase of Pacific affiliated agency McGraw Insurance, is expected to close next quarter.
Biglari will pay the $299.5 million price tag with a $24 million upfront cash payment, while the rest will be paid out in deferred tranches.
“A family managed business such as the one by the McGraws fits well within Biglari Holdings’ collection of businesses,” Biglari Holdings chairman and chief executive Sardar Biglari said in the report.
“By becoming a constituent company of Biglari Holdings, Pacific Specialty and its affiliated agency will benefit from the parent company’s strength and stability,” he added.
Pacific Specialty operates in all 50 states and is best known for providing motorcycle, personal watercraft and homeowners’ insurance. Michael J. McGraw will continue as Pacific Specialty’s chief executive. He is selling the company along with John M. McGraw.
Biglari has also purchased commercial trucking insurance underwriter First Guard Insurance of Florida.
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