Abstract:
In this paper we will discuss about Meadowbrook Insurance's business deal. The company announced its recent business deal in February 2008. Meadowbrook is going to own ProCentury Corporation for 272.6 million dollars. The deal has to be approved by the shareholders of the two organizations. The whole transaction is likely to be completed within September 2008.
Meadowbrook Insurance disclosed its recent business deal with ProCentury Corporation in February 2008. The former will own the latter for 272.6 million dollars.
Meadowbrook Insurance Group, Inc. is situated in Michigan. It captures the leading position in the American market of specialty program management. It is basically 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 as well as small-scale businesses.
Freidman, Billings, Ramsey & Co., Inc. will be the financial advisor and Baker & Hostetler LLP will be the legal advisor for ProCentury. On the other hand, ParaCap Group LLC and Bodman LLP will be Meadowbrook's financial and legal advisor respectively.
Terms & Conditions:
- The deal finally has to be approved by the shareholders of both the companies.
- ProCentury Corp.'s shareholders will get 20 dollars per ProCentury share in cash.
- The newly formed company will be operating under the name of Meadowbrook and trading on NYSE under the symbol "MIG".
- The Chief Executive Officer of Meadowbrook will hold the same chair in the new company as well.
- Couple of ProCentury's Board Members will enter into the Meadowbrook's Board of Directories.
- The whole process will be finished within 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. Therefore, Meadowbrook will be able to expand its business rapidly.