Pacific Specialty Insurance Co. of Anaheim and its affiliated McGraw Insurance Inc. were sold for $299.5 million to BHIC Inc., a unit of publicly traded Biglari Holdings Inc. in San Antonio.
The deal includes $24 million in cash at closing and $275.5 million in deferred payments—$175.5 million in cash over a 10-year period and $100 million from a promissory note that matures upon the death of Michael J. McGraw for the benefit of the University of Notre Dame.
Pacific Specialty sells specialty and general insurance and keeps a second office in Palo Alto.
The ownership change won’t alter day-to-day operations, and it will operate independently of Biglari Holdings.
The transaction, subject to regulatory approvals, is expected to close in the third quarter.
—Peter J. Brennan
