Validus Holdings Ltd. said it has completed its acquisition of Archer Daniels Midland Co.’s (ADM) Crop Risk Services business (CRS), a primary crop insurance managing general agent based in Decatur, Ill., with $555 million in gross premiums written in 2016 and 1,170 agents across 36 states.
“The acquisition of CRS is another important step in building our global specialty insurance business. Validus will benefit from CRS’s commitment to provide superior customer service to agents and farmers via their leading technology capabilities,” Validus chairman and chief executive officer Ed Noonan stated. “We welcome CRS to Validus and look forward to working with ADM to continue offering a full range of crop insurance products as well as ADM’s grain marketing services to our CRS customers.”
Joe Taets, president of ADM’s Agricultural Services Business Unit, stated, “We’re pleased to complete a transaction that advances our strategy by allowing ADM to partner with Validus to continue to offer CRS customers a full array of grain marketing products and services. We’d like to thank the CRS team for their service to ADM and look forward to continuing to work with them and the rest of Validus.”
Under the terms of the transaction, ADM received $127.5 million in cash, subject to certain working capital and balance sheet adjustments, in exchange for 100% of the outstanding stock of CRS. The transaction includes a marketing services agreement under which ADM and Validus will continue to work together to offer a full range of insurance and farm products and services to CRS customers. CRS will operate as part of the Western World Insurance Group.