Stone Point Capital closes purchase of Ever.Ag’s risk management unit
Stone Point Capital has completed its acquisition of the risk management business of Ever.Ag. The business serves dairy, swine, cattle and grain clients through insurance, advisory and derivatives brokerage services. William Blair advised Ever.Ag on the sale, while Sidley Austin counseled Stone Point. Ever.Ag will retain a commercial relationship with the newly independent business going forward.
The private equity firm Stone Point Capital has finalized its acquisition of the risk management division of Ever.Ag. Ever.Ag is an agricultural technology company based in Lewisville, Texas. The financial terms of the transaction were not disclosed. This acquisition marks a strategic move for both entities within the agricultural and financial services sectors.
The acquired business specializes in providing risk management solutions to various participants in the agricultural market. These services encompass insurance, advisory, and derivatives brokerage. Its clientele includes agricultural producers, processors, cooperatives, and manufacturers involved in the dairy, swine, cattle, and grain sectors.
Following the acquisition, the risk management business will operate as an independent entity, retaining its existing management team. It is expected to introduce a new brand identity subsequent to the transaction. Both Ever.Ag and the newly independent risk management unit plan to maintain a commercial relationship, leveraging their previous collaborative efforts in serving customers within the agricultural supply chain.
For Ever.Ag, this divestiture allows the company to sharpen its focus on its core competencies. The firm will now concentrate primarily on software development, artificial intelligence (AI) applications, and other tech-enabled services tailored for the agricultural industry. This strategic realignment aims to optimize Ever.Ag's resource allocation and accelerate innovation in its specialized areas.
Advisory roles for the transaction included William Blair, which advised Ever.Ag on the sale, and Sidley Austin, which provided counsel to Stone Point Capital. The continuation of a commercial relationship between the divested unit and Ever.Ag suggests a collaborative future, despite the change in ownership, aiming to benefit their shared client base.
This transaction signals a continued interest in specialized financial services within the agricultural sector, particularly those incorporating technology and advisory components. It highlights a trend where private equity firms are investing in focused units that offer critical risk mitigation solutions, while selling companies streamline their operations to concentrate on core technological advancements.