Howard Hughes Holdings Inc. $HHH (+0,64%) has successfully completed the previously announced acquisition of Vantage Group Holdings. Vantage Group Holdings is a leading specialty insurance and reinsurance company. The acquisition of Vantage Group Holdings amounts to a total of approximately $2.1 billion. This marks further progress in Howard Hughes Holdings’ transformation into a diversified holding company.
Bill Ackman (Executive Chairman) says: “Vantage will now serve as the cornerstone of Howard Hughes’ transformation into a diversified holding company. The combination of Vantage’s excellent specialty insurance and reinsurance platform and Pershing Square’s investment capabilities creates a strong foundation for building a profitable insurance company and a source of long-term value creation for Howard Hughes and its shareholders.”
Ryan Israel (Chief Investment Officer) says: “We believe that Vantage will deliver high returns on capital for Howard Hughes’ shareholders for decades to come.”
The Strategic Benefits of the Transaction
- The acquisition of a high-yield, fast-growing insurance company accelerates HHH’s overall growth profile.
- Vantage complements and diversifies Howard Hughes Holdings’ sources of long-term value.
- Vantage benefits from HHH through long-term capital support, which strengthens Vantage’s credit profile and increases its flexibility in lending.
The transaction was financed by HHH’s cash on hand and the issuance of $1 billion in preferred stock to Bill Ackman’s Pershing Square Holdings.
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