In this paper we will discuss Meadowbrook Insurance’s business deal. The company announced its recent business deal in February 2008. Pending approval by the shareholders for the two organizations, Meadowbrook is going to purchase ProCentury Corporation for 272.6 million dollars.
The entire transaction is likely to be completed by September 2008. Meadowbrook Insurance disclosed its recent business deal with ProCentury Corporation in February 2008, where it was announced that the former will purchase the latter for 272.6 million dollars. Meadowbrook Insurance Group, Inc. is located in Michigan, and has captured the leading position in the American market of specialty program management.
Essentially, it provides solutions regarding risk management, including alternative risk management. ProCentury, situated in Ohio, is a casualty insurance and specialty property holding company.
Century Surety Company, a subsidiary of ProCentury Corporation, underwrites casualty and property insurance for medium and small-scale businesses.Freidman, Billings, Ramsey & Co., Inc. will be the financial adviser for ProCentury, and Baker & Hostetler LLP will be their legal adviser.
Alternatively, ParaCap Group LLC and Bodman LLP will be Meadowbrook’s financial and legal advisers respectively.
Terms & Conditions:
The deal has to be approved by the shareholders of both the companies.
ProCentury Corp.’s shareholders will get $20 in cash per ProCentury share.
The newly formed company will be operating under the name of “Meadowbrook” and trading on the NYSE under the symbol “MIG”.
The Chief Executive Officer of Meadowbrook will hold the same chair in the new company as well.
A couple of ProCentury’s Board Members will enter into the Meadowbrook’s Board of Directories.
The whole process will be finished by September 2008.
Objectives of the Deal:
Meadowbrook aims to increase their revenue through this deal.This deal will enable Meadowbrook to work with the insurance professionals of ProCentury, allowing Meadowbrook to rapidly expand its business.