United Fire Acquires Mercer Insurance Group

Mercer Insurance Group announced on Tuesday its acquisition by United Fire & Casualty Company for $28.25 per share in cash.

Published on December 1, 2010

Under the terms of the agreement, the 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. The combined 2009 net written premiums for the two companies were $605 million. The 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 United Fire expects to finance the transaction with a combination of available cash and bank financing.

Mercer Insurance Group is a holding company and through its property and casualty insurance subsidiaries provides property and casualty insurance products.