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DEFINITY AND MCDOUGALL PARTNER TO ACQUIRE DRAYDEN AND EXPAND THEIR INSURANCE BROKER PLATFORM INTO ALBERTA
DEFINITY AND MCDOUGALL PARTNER TO ACQUIRE DRAYDEN AND EXPAND THEIR INSURANCE BROKER PLATFORM INTO...
About this update from Definity Financial Corp.
[{"type":"text","content":"\n \n \n \n DEFINITY AND MCDOUGALL PARTNER TO ACQUIRE DRAYDEN AND EXPAND THEIR INSURANCE BROKER PLATFORM INTO ALBERTA\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n HIGHLIGHTS\n \n \n \n \n Drayden is a large scale independent insurance broker in\n \n Alberta\n \n with a proven track record\n \n \n Acquisition will complement Definity's existing portfolio of broker assets with the establishment of a strong presence in\n \n Western Canada\n \n \n \n Transaction is expected to increase Definity's earnings from distribution\n \n 1\n \n by over 25% and be immediately accretive to Definity's operating ROE and operating EPS\n \n 2\n \n \n \n \n \n \n WATERLOO, ON\n \n \n ,\n \n \n June 13, 2023\n \n \n /CNW/ - McDougall Insurance Brokers Limited (\"McDougall\"), a subsidiary of Definity Financial Corporation (TSX: DFY), has announced that it has entered into a definitive agreement to acquire 100% of Drayden Insurance Ltd. (\"Drayden\") for\n \n $208 million\n \n , subject to closing and post-closing adjustments. The transaction will be funded by Definity, through McDougall, using a combination of excess capital and debt. After accounting for all related transactions, Definity's ownership interest in McDougall will increase to approximately 78%.\n \n \n \n \n \n \n \n \n \n Founded in 1965, Drayden is a leading\n \n Alberta\n \n insurance broker with approximately\n \n $125 million\n \n in annual premiums and strong operating margins. Through its insurance broker and government registry service operations, Drayden employs over 170 people across eight locations in the\n \n Edmonton\n \n area.\n \n \n After closing of the Drayden transaction, McDougall will have over\n \n $860 million\n \n in annual premiums with 860 employees in 65 office locations. The transaction is expected to be immediately accretive to Definity's operating ROE and operating earnings per share. Definity continues to hold significant financial capacity for future opportunities.\n \n \n \"The addition of Drayden will provide immediate scale and market leading ...