Hagerty Going Public, Anticipated To Begin Trading In Early December 2021

A new investment vehicle is on the horizon for car enthusiasts. One that doesn’t require buying a collector car or needing garage space.

The owner of the Amelia Island Concours d’Elegance — Hagerty — is anticipated to become a public company in early December 2021.

It was announced back in August 2021 that Hagerty was to go public via a SPAC (Special Purpose Acquisition Company), a merger deal with Aldel Financial (ADF: NYSE), with implied value of $3.13 billion. Aldel Financial Inc. is a blank check company formed for the purpose of effecting a merger. When the transaction closes, Aldel Financial will be renamed Hagerty, Inc.

According to Aldel Financial, a virtual special meeting of the stockholders is scheduled for Wednesday, December 1, 2021 to consider and vote on Aldel’s proposed business combination with The Hagerty Group, LLC and related matters.

Thus, a new investment vehicle for collector car enthusiasts — one that doesn’t require buying a classic car and needing garage space — is anticipated to soon make its debut (expected New York Stock Exchange ticker symbol HGTY).

Hagerty’s Portfolio of Products, Services & Media

The Amelia Island Concours d’Elegance was just one of a few Concours acquisitions made by Hagerty in 2021, adding to its growing portfolio of events. Hagerty’s CEO, McKeel Hagerty, has expressed intent to preserve the uniqueness of individual events (specifically mentioning Amelia Island and the Concours in Greenwich).

Hagerty insures more than two million vehicles globally. Based in Traverse City, Michigan, Hagerty also has offices in the United Kingdom and Canada. According to “Ringing The Bell, Eyeing The Future,” by Hagerty’s CEO (a commentary recently published in the Traverse City Business News (Nov. 30, 2021), McKeel Hagerty indicates that he will be at the NYSE to ring the opening bell “next week — if the schedule doesn’t change.”

Beyond Insurance

Besides being the world’s largest provider of specialty insurance for enthusiast vehicles, Hagerty is so much more, solidly embedded in the realm of car culture. While insurance is reportedly the largest revenue source, Hagerty has also developed and grown its automotive lifestyle brand that includes a membership program (Hagerty’s Drivers Club), proprietary valuation tools, and media (including magazines and digital properties). Hagerty Garage + Social is a collection of premium social and storage membership facilities for car lovers with locations in Chicago, New York, Miami, Toronto and Delray Beach, Florida.

Hagerty Media — YouTube Channel

The company has a YouTube channel, Hagerty Media, with a big following (more than 1.75 million subscribers).

Beautiful blue classic Cadillac. Amelia Island Concours d'Elegance. Photo by AmeliaIslandLiving.com
Amelia Island Concours d’Elegance

Hagerty will qualify as an “emerging growth company” within the meaning of the Securities Act.

“We believe this transaction will help to accelerate Hagerty’s many growth opportunities and realize our bold mission to build the best automotive enthusiast brand in the world and save driving and car culture for future generations. As we look ahead, we are focused on investing in Hagerty’s digital user experience interfaces to support our growing membership base, while we continue to expand our portfolio with highly engaging car events and exciting services like DriveShare by Hagerty and Hagerty Garage + Social clubhouses.”

McKeel Hagerty (Aldel Financial news release 8/18/2021)
Save The Date: 2022 Amelia Concours

Those who missed the 2021 Amelia Island Concours d’Elegance can mark their calendar for the next one, March 3-6, 2022.  For car enthusiasts who’ve never experienced Amelia Island during the several days of assorted events, it’s a trip for the bucket list.

Amelia Island Concours d'Elegance Sold To Hagerty
Amelia Island Concours d’Elegance

Hagerty also sponsors less formal gatherings that bring car enthusiasts together, like the popular Cars & Coffee events. On Amelia Island, Cars & Coffee is held at the Golf Club of Amelia one day before the Amelia Concours d’Elegance. Another example, Hagerty also sponsored the Concours d’Lemons Florida held in 2021 on Amelia Island at Fernandina’s Main Beach Park. Both of these casual, free admission events are happening on this northeast Florida barrier island Saturday, March 5, 2022. Hagerty takes part in more than 2,500 car events annually.

The Amelia Concours d’Elegance and associated activities brings around 25,000 people to the island, including overnight visitors for multiple days. It has the biggest financial impact of any event held each year on this northeast Florida barrier island. The economic impact of the “The Amelia” locally for the last two years has been estimated as follows (according to studies by Research Data Services, Inc.): $26.4 million for the May 2021 event (even with less attendance by international visitors due to pandemic travel restrictions). The previous Amelia Concours held in early March 2020 brought in an estimated $30 million.

More About Aldel Financial

Aldel Financial’s management team is led by Robert I. Kauffman (Chairman & CEO). Kauffman co-founded Fortress Investment Group back in 1998, and was part of its leadership team until his retirement from the company in December 2012. He’s no stranger to the collector car and racing world as partner of racing team (Chip Ganassi Racing), and a driver. Kauffman owns a 1973 Porsche 917/30 Can-Am Spyder, the race car that won the top award, the “Best in Show Concours de Sport Trophy,” at March 2020’s Amelia Island Concours d’Elegance. The 1973 Porsche 917/30 Can-Am Spyder was one of more than 30 vehicles appearing at the Golf Club of Amelia related to Roger Penske, the honoree of the 2020 Amelia Concours d’Elegance event.

Hagerty’s Mission

Hagerty’s Chief Executive Officer, McKeel Hagerty, often talks about the company’s mission:

“Hagerty’s purpose is to be the organization that saves driving and car culture for future generations.”

No doubt there are car lovers worldwide who’d like this to be a mission accomplished. Learn more about Hagerty and its new foundation started in 2021 by watching video below. McKeel Hagerty credits Jay Leno with creating a challenge to think differently about the future of the car world.

The Future Of Transportation

The winds of change have been blowing hard in the transportation industry. Aiming for greener goals, it’s an industry attempting to transition to become more carbon neutral, as time marches on. A shift to electric vehicles (EVs) has been underway in recent years. There’s also the future potential of driver-less vehicles. However, there will always be people who want to sit behind the wheel and drive themselves. And those who want to keep combustion engines, if at all possible. It’s hard to imagine a future world without having these choices.

Hagerty “2021 Capital Markets Showcase” Webcast

A special presentation led by McKeel Hagerty was streamed November 17, 2021, from Bedford Hills, New York at one of Hagerty’s Garage + Social locations. The webcast included a virtual Garage + Social tour.

“As we gear up to complete our proposed merger with Aldel Financial and join the New York Stock Exchange under the ticker HGTY, we are excited to invite investors and analysts to experience Garage + Social while also learning more about our unique membership model, resilient financial performance, and growth prospects.”

McKeel Hagerty, Hagerty CEO

According to the “transaction recap and update” in the 2021 Capital Markets Showcase PDF slideshow (dated November 17, 2021), the date provided of Hagerty’s “expected trading” was December 3, 2021.

Also participating in the Hagerty 2021 Capital Markets Showcase webcast was Hagerty CFO, Fred Turcotte. The webcast also features a Q+A session with analysts and investors that includes Rob Kauffman, Chairman and CEO of Aldel Financial.  The webcast, PDF presentation and Q+A session is available on the “Events & Presentations” page of Hagerty’s investor relations website. Also available for review online, are the documents filed with the Securities & Exchange Commission, including Proxy Statement (filed Nov. 10, 2021) and quarterly 10-Q Report (filed Nov. 12, 2021).

Learn More About Collector Car Market

Self-described by their corporate tag line, Hagerty “exists for people who love cars.” For the novice who’d like to expand car knowledge and follow this asset class, Hagerty offers a monthly “Market Rating” and various collector car indices — proprietary valuation tools. These include “Muscle Cars,” “Affordable Basics,” “Blue Chip” and others. To learn more, visit the Hagerty website.

As with all investments, potential investors should perform due diligence.

EDITORIAL NOTE — This article was updated December 2, 2021 to include paragraph about ringing the bell at NYSE.

More About Amelia Concours d’Elegance

Amelia Island Living has published numerous articles about the Amelia Island Concours d’Elegance over the past 20 years, browse archives.