Insights

“There is a lot of new activity in the market that is building a good economy while existing employers like Michoud have fascinating things going on.”

When Gay LeBreton joined Chaffe and Associates in 1987, the New Orleans-based financial advisory and investment banking firm was helping its clients — local banks and savings and loans — work through what, at the time, was the worst financial crisis since the Great Depression. Many local institutions didn’t make it.

Several Louisiana-based companies are growing aggressively through acquisitions. Within the past five weeks, T. Parker Host, Sazerac Company, Maritime Partners and Danos each completed their second or even third acquisition of the year.

We are excited to share our Insurance Underwriters Industry Report, featuring our insights into mergers and acquisitions activity among underwriters in the Life & Health, Managed Care, and Property & Casualty segments. We address overall deal activity, assets and interests being bought/sold, disclosed prices, notable deals, and activity among financial buyers.

In a landmark transaction in July, Baton Rouge-headquartered Lamar Advertising Co. acquired Tempe, AZ-based Verde Outdoor using the first-ever UPREIT deal in the billboard industry. Rather than opting for cash or stock, Verde contributed more than 1,500 billboard faces, including 80 digital displays across 10 states, to Lamar Advertising Limited Partnership (“Lamar LP”) in exchange for common partnership units in Lamar LP.

In what may be the largest auto dealership transaction in Louisiana history, Baton Rouge-based All Star Automotive Group has agreed to sell for a reported $700 million.  The buyer is Charleston, South Caroline-based Hudson Automotive Group.

All Star was founded nearly four decades ago by Matt McKay, along with his former partner, John Noland Sr., whom McKay later bought out. The auto network includes 14 brands across 13 rooftops in Baton Rouge, Denham Springs, and Prairieville. Although terms of the sale were not announced, sources told The Advocate that the deal is valued at approximately $700 million.  This includes an estimated $200 million of owned real estate, $80 million in group brand value, along with additional inventory and tangible assets.