Howard Hughes Holdings completes $2.1 billion Vantage acquisition

Howard Hughes Holdings Inc. (NYSE: HHH) completed its acquisition of specialty insurance company Vantage Group Holdings Ltd. for approximately $2.1 billion, the company announced. The transaction transforms Howard Hughes into a diversified holding company.

Founded in 2020, Vantage operates as a specialty insurer and reinsurer offering global property and casualty products. The acquisition was financed through Howard Hughes' cash and $1 billion of non-voting exchangeable perpetual preferred stock issued to Pershing Square Holdings Ltd. (LN: PSH).

Under the arrangement, Pershing Square will manage Vantage's investment portfolio without charging fees. The preferred stock ranks equal with Howard Hughes common stock regarding payment rights and liquidation. Howard Hughes has repurchase rights during annual windows over the first seven years, with pricing based on either 4% annual returns or 1.5 times the buyer's book value.

"Vantage will now become the cornerstone of Howard Hughes' transformation into a diversified holding company," said Bill Ackman, Executive Chairman of Howard Hughes.

Greg Hendrick, CEO of Vantage, stated that Howard Hughes' permanent capital provides foundation for investment through business cycles. Ryan Israel, Chief Investment Officer of Howard Hughes Holdings, said the company expects Vantage to generate high returns on equity.

Jefferies LLC served as exclusive financial advisor to Howard Hughes, while Latham & Watkins provided legal counsel. J.P. Morgan Securities LLC advised Vantage, with Debevoise & Plimpton LLP representing Carlyle and Hellman & Friedman.

The transaction details were disclosed in a press release statement.

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