Horst Insurance, an independent insurance agency in Manheim Township, Lancaster County, has acquired Ruhl Insurance, a smaller brokerage based in Manheim borough.
- The deal, which took effect March 1, returns Horst to the acquisition market after a pause of more than a decade.
- The firm’s last acquisition was in 2008, also involving a Lancaster-area brokerage, said David King, president and CEO of Horst Insurance.
- “I think you’re going to see a return of local broker-to-broker activity,” King said in an interview with biznewsPA.
- He declined to share the terms of the transaction with Ruhl.
Why is this happening: Private equity firms dominated the M&A market for insurance brokerages over the last decade, King said.
- And they were generally willing to pay more than local agencies, he said.
- But as interest rates rose and money became more expensive, private equity buyers became less active, giving other buyers a chance, he said.
- Prior to its 2008 acquisition, Horst was making an acquisition roughly every 18 months, King said.
What’s next: Ruhl is retaining its name and staff.
- Horst eventually shifts its acquisitions to its own name, King said.
- Ruhl is known for specializing in farms and agribusinesses, so its name may remain for several years, King added.
The background: Founded in 1943 by Jacob Ruhl, Ruhl Insurance had been led until last year by his grandson, Nevin Dourte.
- Dourte died unexpectedly in August, leading the firm to evaluate its future path, according to Dourte’s daughter, Megan Shumaker, who had become its president.
- “After careful consideration of the best options to consider our mission while expanding our resources and capabilities, we decided to partner with Horst,” Shumaker said in a statement.
- Ruhl manages insurance needs for more than 1,800 personal, commercial, farm and agri-business clients.
- Horst has more than 7,000 personal and business clients and does business in 46 states. Since 1998, Horst has acquired 10 firms.
- Horst Insurance is part of Horst Group, whose other units offer construction and management services.
