Aquesta Financial Holdings in Cornelius, N.C., has sold its insurance business to NFP.
The $422 million-asset company said Monday it will use the proceeds from the cash sale for general corporate purposes, including paying off outstanding lines of credit and boosting capital at Aquesta Bank to support growth.
Aquesta Financial acquired what is now Aquesta Insurance Services more than eight years ago and added to it last year with the purchase of Paladin Insurance Group in Murrells Inlet, S.C.
“It recently became clear that a sale of Aquesta Insurance would help Aquesta Bank continue its own excellent growth by providing significant capital enhancement,” Jim Engel, CEO and president of Aquesta Financial, said in a press release.
Aquesta Financial did not return a call seeking additional comment.
The price of the sale was not disclosed. Aquesta Financial expects to record a post-tax gain from the sale of $1.7 million in the second quarter.
NFP is a national insurance and wealth management firm.