Cranberry Township-based MSA Safety Incorporated, a manufacturer and supplier of safety products, recently divested a wholly-owned subsidiary to a joint venture of R&Q Insurance Holdings and Obra Capital.
The unnamed subsidiary holds legacy product liability claims relating to coal dust, asbestos, silica, and other exposures. MSA Safety contributed $341 million in cash and cash equivalents, and R&Q and Obra contributed $35 million toward closing.
“We are pleased to complete the sale of this subsidiary to R&Q and Obra, trusted specialist partners with proven track records of managing legacy matters,” Nish Vartanian, MSA Safety chairman, president, and CEO, said. “This important action enables greater focus on MSA’s future growth, profitability, and continued strong return of value to our shareholders. The completion of this transaction allows us to do more of what we do best – developing and manufacturing innovative safety technologies and protecting the world’s workers.”
The divestiture allows MSA Safety to reduce its risk profile and eliminate the potential expenses and complexities of nonoperating legacy liabilities.
The transaction closed on Thursday.
MSA Safety has manufacturing operations in the United States, Europe, Asia, and Latin America.
R&Q is a nonlife global specialty insurance company.
Obra is an investment firm specializing in insurance special situations, structured credit, asset-based finance, and longevity.