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Driving to Wall Street: Hagerty Trading on the NYSE

“Today is just the beginning of an exciting road ahead. We know this was an important step in Hagerty’s evolution as we continue to dedicate ourselves to you and our purpose to save driving for future generations.” —McKeel Hagerty, CEO

Last week Hagerty began trading on the NYSE under the ticker HGTY. This is yet another example that highlights the explosive growth and maturation of the collector car industry. This high profile public offering follows the 2015 formal tie up between RM Auctions and global behemoth Sotheby’s as well as the 2020 acquisition of Bring a Trailer by Hearst. In a recent issue of Sports Car Market, we take a deep dive into the details behind the Hagerty SPAC transaction. Click here to read the SCM story. You can also tune in live on Monday December 6th and watch Hagerty CEO McKeel Hagerty ring the opening bell at the New York Stock Exchange. Click here at 9:30am EST on Monday December 6th to watch it live.

PR Newswire:

Hagerty Debuts Today as a Publicly Traded Company on the New York Stock Exchange After Completing Business Combination with Aldel Financial

– Specialist automotive insurance provider targets the growing North American and global automotive enthusiast markets with a scalable, innovative membership ecosystem including collector car insurance, exciting media offerings and a robust lineup of car events, experiences and services

– Transaction values Hagerty at a pro forma enterprise value of approximately $3.1 billion

– Net proceeds of approximately $265 million will be used to advance Hagerty’s strategic growth opportunities, including digital innovation initiatives

PR Newsire

December 3, 2021

Link to the story here

TRAVERSE CITY, Mich., Dec. 3, 2021 /PRNewswire/ — Hagerty, Inc. (NYSE: HGTY) (“Hagerty” or the “Company”), an automotive lifestyle brand and a leading specialty insurance provider focused on the global automotive enthusiast market, announced that shares of its common stock and warrants will begin trading today on the New York Stock Exchange under the ticker symbols HGTY and HGTY.WS, respectively. This follows the completion of the Company’s previously announced business combination with Aldel Financial Inc. (“Aldel”), a publicly traded special purpose acquisition company. Aldel shareholders approved the business combination at a special meeting held on December 1. Hagerty executives will ring the bell to open the trading day at the New York Stock Exchange on Monday, December 6.

Hagerty’s SPAC merger with Aldel included a $704 million fully committed PIPE led by strategic investors State Farm and Markel Corporation and including a group of top-tier institutional and private investors.

McKeel Hagerty, the Company’s CEO, said, “Today is a milestone for Hagerty and a testament to the talent and dedication of the entire Hagerty team and their commitment to our purpose of saving driving and car culture for future generations.

“We have built the Company to optimize growth across the vast automotive enthusiast market, which today stands strong at an estimated  69 million enthusiasts in the U.S. alone. Our goal is not only to provide car lovers with great insurance but to help them connect with one another and have fun with their cars. We are focused on preserving the parts of driving that created American car culture in the first place – family, fun, community, competition, road trips and so much more.

“Being listed on the NYSE marks the start of an exciting new chapter in Hagerty’s history. We are confident that we have sufficient capital to advance our strategy, which remains focused on investing in the Company’s digital user experience to support and accelerate growth in our membership base, while expanding our portfolio of engaging and exciting car-focused events and services. We believe this strategy will create rewarding new experiences for car lovers and sustainable value for our shareholders over the long term.”

Robert I. Kauffman, Chairman & CEO of Aldel, said, “Aldel’s mission was to partner with a great business with a large and growing market opportunity, as well as a differentiated operating model. Hagerty meets those criteria and more. It is a company not only primed for growth, but one with a unique culture and visionary leadership team, as well as a record of financial success. We look forward to supporting Hagerty in its efforts to drive profitable growth in the years ahead.”

A Differentiated Membership-Driven Growth Story

Hagerty is a leading provider of specialty automotive insurance with approximately 2 million cars insured globally, an industry-leading 84 Net Promoter Score (NPS) and partnerships with nine of the top 10 U.S. automotive insurers.

Hagerty has invested in a unique business model that integrates omni-channel distribution, risk management & reinsurance, and subscription & membership with a rich source of first-party data to drive multiple revenue streams and several compelling market advantages for Hagerty. The Company’s omni-channel insurance distribution model positions the Company to scale through national insurance partners, local agents and brokers, and direct distribution.

In addition, Hagerty’s highly differentiated membership model helps to drive loyalty and retention by engaging, entertaining and connecting with members at every stop of their journey — digitally, on the track, in the garage, at an event or on the road. The Company’s portfolio of automotive offerings includes Hagerty Drivers Club (1.8 million members), Hagerty Drivers Club magazine (1.2 million readership), Hagerty YouTube (1.75 million subscribers), three major concours events, a nationwide collection of premium social and car storage membership facilities called Hagerty Garage + Social, and DriveShare, a peer-to-peer service that lets people rent vintage and cool cars.

Hagerty’s unique, industry-leading business model has resulted in a record of consistent success, including:

  • 29% compounded annual revenue growth rate from 2018 to 2020
  • Strong customer retention at 90%1
  • Average loss ratio of 41%2, which is significantly lower than U.S. personal lines auto insurance industry of 76%
  • Millions of individuals following Hagerty’s automotive insights and participating in its social media programs


J.P. Morgan Securities LLC (J.P. Morgan) is serving as financial advisor to Hagerty and Global Leisure Partners LLC (GLP) and ThinkEquity LLC (ThinkEquity) are serving as financial advisor to Aldel in connection with the business combination. Sidley Austin LLP is serving as legal advisor to Hagerty. Loeb & Loeb LLP is serving as legal advisors to Aldel. GLP and ThinkEquity are serving as capital markets advisors to Aldel. J.P. Morgan and GLP are serving as coplacement agents on the PIPE. Mayer Brown LLP and Jones Day are serving as legal advisors to the placement agents on the PIPE.



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One Response to Driving to Wall Street: Hagerty Trading on the NYSE

  1. Somer December 6, 2021 at 8:08 am #

    Hagerty has always had his eye on the “long game”. Miles ahead of others in the industry in that aspect and customer service.