Alleghany Corporation to be Acquired by Berkshire Hathaway for $11.6 Billion

March 21, 2022

Willkie advised insurance company Alleghany on the landmark transaction.

On March 21, Alleghany Corporation and Berkshire Hathaway announced that they entered into a definitive agreement under which Berkshire Hathaway will acquire Alleghany in a deal valued at approximately $11.6 billion.

Berkshire Hathaway will acquire all outstanding Alleghany shares for $848.02 per share in cash, representing a multiple of 1.26 times Alleghany’s book value at December 31, 2021, a 29% premium to Alleghany’s average stock price over the last 30 days and a 16% premium to Alleghany’s 52-week high closing price.

The acquisition is expected to allow Alleghany and its subsidiaries to operate as an independent entity with increased capital strength and support from Berkshire Hathaway.

Willkie previously advised Alleghany on numerous transactions, including the sale of Pacific Compensation Insurance Company and Alleghany Capital Corporation’s investments in W&W|AFCO Steel, Hirschfeld Industries and Linesight.

Alleghany Corporation owns operating subsidiaries and manages investments, anchored by a core position in property and casualty reinsurance and insurance. Alleghany's property and casualty subsidiaries include: Transatlantic Holdings, Inc., a leading global reinsurer; RSUI Group, Inc., which underwrites wholesale specialty insurance coverages; and CapSpecialty, Inc., an underwriter of specialty casualty and surety insurance coverages. Alleghany's subsidiary Alleghany Capital Corporation owns and supports a diverse portfolio of eight non-financial businesses.

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services.

The Willkie team was led by partners Steven Seidman, Laura Delanoy and Laura Acker.