KKR to acquire remaining 37% of Global Atlantic for $2.7B in cash

KKR & Co. and Global Atlantic Financial Group announced a definitive agreement under which KKR will acquire the remaining 37% stake of leading insurance company Global Atlantic, increasing KKR’s ownership to 100%. Under the terms of the agreement, KKR will pay Global Atlantic’s minority shareholders an amount in cash equal to 1.0x Global Atlantic’s book value with certain adjustments. The total cash purchase price is currently estimated to be approximately $2.7B. Global Atlantic management is expected to exchange a majority of its Global Atlantic equity interests for KKR equity. KKR will fund the transaction from its balance sheet, which had $23B of cash and investments as of September 30, 2023. The transaction, which is expected to close in the first quarter of 2024, is subject to customary closing conditions.