Employers Holdings, Inc. of Reno, Nev., reports it has agreed to acquire AmCOMP Inc. for approximately $230 million, including the assumption of $37 million in debt.
The acquisition will expand Employers’ workers’ compensation insurance operations to a total of 26 states.
Under the terms of the merger agreement, holders of AmCOMP’s approximately 15 million common shares will receive $12.50 in cash for each share. Employers said it expects to finance the purchase price through a combination of cash and debt.
Douglas D. Dirks, president and chief executive officer of Employers Holdings, Inc., said the addition of AmCOMP’s 900 agencies will “significantly” accelerate his company’s growth in expansion states as well as open up new markets for its small business workers’ compensation line.
Employers has historically been focused in the Western states while AmCOMP has been in the Southeast and Midwest, thus there should be little to no overlap in markets, officials said.
Completion of the transaction is subject to regulatory approvals and the approval by AmCOMP’s stockholders. The transaction is expected to be completed in the second quarter of 2008.
Employers Holdings, Inc.’s insurance subsidiaries, Employers Insurance Co. of Nevada and Employers Compensation Insurance Co., are rated A- (Excellent) by the A.M. Best Co..
The subsidiaries of AmCOMP, headquartered in North Palm Beach, Fla., are AmCOMP Preferred Insurance Co. and AmCOMP Assurance Corp.
Source: Employers Holdings, Inc.
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