Great American Insurance acquires National Interstate
National Interstate Corporation, a property/casualty holdings group, has entered into a definitive agreement with insurer Great American Insurance, who will acquire approximately 49 percent of the company's issued and outstanding common shares that Great American does not presently own.
The proposed merger, expected to close in the fourth quarter of 2016, is an all-cash transaction that values National Interstate at approximately $660 million, including assumption of debt in connection with the merger.
As part of the merger, shareholders of National Interstate will receive $32 in cash for each share of the company’s common stock they hold.
Upon the closing of the merger, National Interstate will pay a special dividend of $0.50 per common share.
This figure represents a premium of approximately 43.7 percent to the National Interstate's closing stock price on March 4, 2016, the last trading day before American Financial Group (AFG), Great American's parent company, announced that Great American was proposing to acquire all of the outstanding common shares of National Interstate that Great American did not already own.
Anthony Mercurio, president and chief executive officer at National Interstate, said: "We have come to know AFG and Great American well over the years and value our deep relationship with them.
"Given that longstanding relationship, we are excited about National Interstate's future as a wholly-owned subsidiary within AFG's family of companies."
