Rent Shield Corp., a provider of reinsurance and speciality risk products, is spending $5 million in shares and cash to acquire Canadian Intermediaries Ltd., a dealer in high-risk insurance owned by Rent Shield chairman Stephen Stonhill.

Rent Shield says that Canadian Intermediaries is expected to add $25 million in revenue next year and contribute $1.75 million to earnings before interest, taxes, depreciation and amortization.

Canadian Intermediaries, owned by Stonhill since 1995, specializes in hard-to-place liability and credit insurance, and represents underwriters at Lloyd’s of London.

“The acquisition of CIL should be an ideal vertical fit for the Rent Shield business model as we continue to expand our offerings of pass-through risk specialty insurance and reinsurance products. We plan on continuing to make strategic acquisitions that will complement our organic growth,” said Stonhill, in a news release.

Canadian Intermediaries is expected to record in excess of $17 million in revenues in 2003.