Fosun International will acquire Meadowbrook Insurance Group for about $433 million. The Chinese company will pay $8.65 in cash for each share of the Michigan-based insurance company.
Fosun International said plans to use the profits from the insurance company to support its long-term investments.
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"This transaction is the culmination of a thorough strategic review process to maximize shareholder value," Meadrowbrook president and CEO Robert S. Cubbin said in a statement. "We believe this is a positive outcome for our shareholders, who will receive significant value; our employees, who will benefit from enhanced opportunities as part of a larger, global organization; and our customers, partners and policyholders, who will benefit from an even stronger specialty risk, insurance and service provider."
TheStreet Ratings team rates MEADOWBROOK INS GROUP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MEADOWBROOK INS GROUP INC (MIG) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow."