Hunton Andrews Kurth Advises GAINSCO, Inc. in $400 Million Acquisition by State Farm Mutual Automobile Insurance Company

Hunton Andrews Kurth LLP is representing GAINSCO, Inc. (GAINSCO) in its acquisition by State Farm Mutual Automobile Insurance Company (State Farm). The merger agreement was signed September 16, 2020, and is expected to close in early 2021 for a purchase price of approximately $400 million. 

This transaction is State Farm’s first acquisition in its 98-year history. With approximately 84 million policies and accounts, State Farm and its affiliates are the largest providers of auto and home insurance in the United States. GAINSCO, established in 1978 and based in Dallas, Texas, specializes in minimum-limits personal auto coverage. 

Under the terms of the agreement, State Farm Mutual will acquire 100% of GAINSCO’s outstanding stock. GAINSCO will continue to operate as a separate entity, and it is anticipated that State Farm agents will eventually have the ability to distribute GAINSCO products. 

The Hunton Andrews Kurth team representing GAINSCO is led by partners Steve Leshin and Steven Haas, with support from M&A associates Charles Brewer and Luis Andrade, tax partner Robert McNamara, employee benefits partner Scott Austin, labor and employment partner Alan Marcuis and antitrust partner Kevin Hahm.