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Reliance Global eyes $11 million sale of Michigan benefits unit
The planned deal is structured as $9.35 million at closing plus $1.65 million held in escrow for 18 months, with Reliance expecting net incremental cash after retiring a roughly $4.4 million term loan.
Reliance Global Group has signed a non binding letter of intent to sell Altruis Benefit Consulting, a Michigan benefits consultancy, for $11 million in cash, according to Insurance Business.
Under the proposed terms, about $9.35 million would be paid at closing and roughly $1.65 million would be held in an interest bearing escrow account, released 18 months after the deal closes. Reliance said the full purchase price would be paid in cash, with no buyer stock, seller note, or earnout, and that there is no assurance a definitive agreement will be executed or that the transaction will close on the stated terms.
Reliance plans to use proceeds to repay its Oak Street Funding term loan of approximately $4.4 million. The company projects net incremental cash of roughly $7.6 million in total and expects retiring the term loan to remove about $1 million annually in principal and interest expense, freeing cash for other uses.
Insurance Business also noted the buyer was not identified in the announcement and has not been named in subsequent coverage, leaving the transaction genuinely uncertain until definitive agreements are reached. The proposed sale would be the third Michigan benefits divestiture for Reliance since the start of 2026, following earlier sales of Employee Benefits Solutions and U.S. Benefits Alliance.