The sale of Lucini/Parish Insurance Co., Inc., a Reno,Nev.-based commercial insurance brokerage firm, is simply part of doing business in today's information-intense insurance industry, says Nick Rossi, the firm's chief executive officer.
"Our marketplace is prone to consolidation," he adds."It's one of its peculiar market conditions.
Everyone in our world is either acquiring or being acquired."
Lucini/Parish, which recorded a 2004 annual revenue of $21 million, sold to Redwood City, California-based ABD Insurance and Financial Services, a subsidiary of Greater Bay Bancorp, a $6.9 billion in assets financial services holding company based in the Bay Area, California.
Rossi will remain with the company, serving as president of ABD-Nevada.And the company name? Still to be decided.
"We don't expect the name to change in the near future," says Rossi.
His company,with 140 employees in six cities Reno, Elko,Winnemucca, Sacramento, Tahoe City, and Las Vegas is looking to a smooth transition, he adds.
And looking for continued growth, too.
"The primary reason ABD purchased us," says Rossi,"is to help us continue to grow."
Lucini/Parish has been in talks with ABD on and off for three years, says Rossi.
But not only with ABD.
The company shopped the market and talked with others along the way.
There was no hurry.
It didn't need to sell, says Rossi.
"ABD's culture lined up nicely with us," he adds.And it had what Lucini/Parish was in search of:market clout; a small enough size so its highest levels are accessible but a large enough capacity to supply an expanded reach.
Lucini/Parish's commercial insurance specializes in property and casualty insurance services and risk management consulting.
Its business is the middle market and upper middle market client, a base it intends to continue to serve.
But what it gets with its acquisition by ABD is a broader array of offerings, and a leap in technology.
ABD itself is a recent acquisition of Greater Bay Bancorp.
It was purchased in March 2002 for approximately $195.2 million.
