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Unified Grocers Inc. has inked an agreement to sell its insurance operations to AmTrust Financial Services Inc., a New York-based insurance holding company.
Under the terms of the deal, AmTrust will purchase Springfield Insurance Co., Unified Grocers Insurance Services (UGIS) and all related operations, as well as the building in Covina, Calif., where the operations are housed. AmTrust will hire all employees who work in the facility, the company said.
The companies expect the transaction to close in approximately 90-120 days, subject to regulatory approval and other customary closing conditions.
"The transaction will be seamless to policyholders. They will benefit from the strength of a $4 billion, A.M. Best 'A' rated insurance provider and its wide portfolio of insurance products and can expect even greater offerings from AmTrust in the future," said Unified 's President and CEO Bob Ling.
Noting that the transaction would benefit clients of both Springfield Insurance Co. and UGIS, Ling added that the deal "allows Unified to streamline its business structure and direct greater focus to its core grocery wholesale operations."
Commerce, Calif.-based Unified Grocers is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western United States.