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With diversified risk profile and increased scale, combined company will market commercial and personal insurance through approximately 1,400 independent agents in 24 states
Transaction expected to add to United Fire earnings by 2012
Conference call regarding transaction to be held at 9 a.m. ET/8 a.m. CT on December 1, 2010
CEDAR RAPIDS, Iowa and PENNINGTON, N.J., Nov. 30, 2010 (GLOBE NEWSWIRE) --
United Fire & Casualty Company (Nasdaq:UFCS)
and Mercer Insurance Group, Inc. (Nasdaq:MIGP) today announced that the companies have entered into a merger agreement. Under the terms of the agreement, United Fire will acquire all of the outstanding shares of Mercer Insurance common stock in a transaction expected to close at the end of the first quarter of 2011. Combined 2009 net written premiums for the two companies were $605 million. Both United Fire and Mercer Insurance are rated A (Excellent) by A.M. Best Co.
Mercer Insurance shareholders will receive $28.25 per share in cash, representing an aggregate transaction value of approximately $191 million. The price represents a premium of 49.8% to the closing price of Mercer Insurance common stock on November 30, 2010. The transaction is subject to customary conditions, including approval by the shareholders of Mercer Insurance and regulatory authorities. Approval of the transaction by United Fire shareholders is not required and there is no financing condition to consummate the transaction. United Fire expects to finance the transaction with a combination of available cash and bank financing.