Petaluma’s Arrow Benefits parent company buys insurance company Sebastopol Aita and Associates


Coinciding with a booming growth plan, the parent company of Arrow Benefits Group has purchased an insurance company Sebastopol, it announced on September 15.

Aita and Associates became Arrow Benefits of Petaluma. The May acquisition comes a week after Pennsylvania-based parent company Patriot Growth Insurance Services announced a plan to recapitalize its investments.

Arrow Benefits CEO Joe Genovese told the Business Journal that Aita and Associates is a perfect fit for Arrow, with its 1,500 clients and 40 employees. He also liked how Aita offered similar benefits, a crucial part of retaining and attracting the right talent in an era of a workforce shortage due to the coronavirus.

“Benefits, in the true sense of the word, have become a means of compensation as a recruiting tool,” he said. “More and more employers are feeling the need to provide benefits and increase their benefit offerings. “

Arrow Benefits retained one of Aita’s corporate principles, Bob Aita, and three other employees at the time of purchase. The company’s other partner, Nancy, Aita’s wife, has retired.

“The trend in the industry is towards consolidation,” said Bob Aita, who now works for Arrow as a senior benefits consultant. At 74, Aita said he was looking for an opportunity to relax and that Arrow had pursued his business for three years.

“We weren’t going to hand the business over to just any company,” Aita said.

Point well taken, noted Patriot Growth CEO Matt Gardner.

“We definitely have strong growth plans for Arrow,” Gardner told The Business Journal.

Financial data for the Sonoma County transaction involving the Sebastopol company was not disclosed, along with details surrounding its recapitalization plan. Typically, companies pursue debt and asset restructuring plans when they receive investments.

Founded in 2019, privately held Patriot Growth owns 64 P&C insurance companies serving more than 100,000 clients in the United States and employs 1,100 people. According to Dunn & Bradstreet, the company has $ 62.5 million in annual revenue.

Gardner explained that his company was looking to merge with companies reaching their peak with “a ton of gas left in the tank.” He insisted that there is no “magic number” on the number of companies he plans to add to his portfolio.

But the 30-year-old insurance benefits manager agreed with Aita that the trend in the industry shows that small businesses are teaming up their carts with large corporations as a way to offer more resources to leverage.

“It is becoming increasingly difficult for smallholders to have the resources to manage demand,” Gardner said.

To strengthen its own financial base, the plan to recapitalize the Fort Washington, Penn. should be completed in a month. The plan, managed financially by Morgan Stanley, centers around an injection of capital involving Summit Partners, an investor based in Boston, Mass., And GI Partners in San Francisco.

For these investors, Patriot Growth sets the tone.

“Matt (Gardner) has demonstrated his ability to attract exceptional talent to Patriot, both in terms of employees and acquisition goals which have broadened the company’s footprint and capabilities,” said the Managing Director of GI Partners, Jeff Sheu, in a statement.

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