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