Hagerty used Facebook on Tuesday to announce its latest acquisition, McCall’s Motorworks Reunion, the Monterey Car Week Jet Center party, but it issued a formal news release early Wednesday morning announcing its merger with Aldel Financial. Under the HGTY symbol, Hagerty plans an initial public stock offering through the New York Stock Exchange.
Aldel Financial is a special purpose acquisition company and will be renamed Hagerty Inc. after the merger closes. That is expected to occur in the fourth quarter of this year.
“We believe our complimentary skills and contacts will further accelerate the Hagerty flywheel,” Robert Kauffman, chairman and chief executive of Aldel Financial, is quoted in the announcement.
“Today’s announcement is an exciting step forward for Hagerty,” the company’s chief executive, McKeel Hagerty, is quoted in the news release. “We are thrilled to partner with Rob and the Aldel team, who bring extensive expertise and strategic relationships in the automotive, insurance and financial sectors that will be a key strategic advantage for Hagerty.
“We believe this transaction will help to accelerate Hagerty’s many growth opportunities and realize our bold mission to build the best automotive enthusiast brand in the world and save driving and car culture for future generations.
“As we look ahead, we are focused on investing in Hagerty’s digital user experience interfaces to support our growing membership base, while we continue to expand our portfolio with highly engaging car events and exciting services like DriveShare by Hagerty and Hagerty Garage + Social clubhouses.
“When it comes to fueling the insatiable passion of tens of millions of automotive enthusiasts, Hagerty is well positioned as a leading specialty insurance provider with a unique subscription and membership model and portfolio of immersive automotive events, entertainment and valuation tools,” he noted.
“For our members, this means a comprehensive and compelling experience that goes far beyond an insurance transaction. For our business, this means market-leading brand loyalty, an attractive business model with multiple points of monetization, a track record of financial success and a strong foundation for future growth.”
According to the announcement, Aldel Financial’s business “is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.”
As you likely know, Hagerty, which specializes in insurance for collector vehicles, has been on an acquisition binge, acquiring concours d’elegance and driving events for its expanding automotive portfolio.
According to the announcement, Hagerty “is a leading specialty insurance provider focused on the global automotive enthusiast market with a scalable, innovative membership model and robust offerings, including immersive events, media content, and valuation tools.”
Hagerty was founded in 1984 as a family-owned insurance business in Traverse City, Michigan, that offered specialized coverage to clients with vintage wooden boats and then with classic vehicles.
The statement says Hagerty’s pro forma enterprise value is $3.13 billion.