China-based Fosun International has signed an agreement to acquire US-based Meadowbrook Insurance Group, for around $433m.
The Chinese conglomerate will acquire Meadowbrook for $8.65 per share in cash, representing a 24% premium over its closing price on 29 December.
The deal will allow Fosun to establish its presence in the US property and casualty market (P&C).
Fosun International chairman Guo Guangchang said: "This transaction allows Fosun to establish a presence in the important US P&C market, consistent with our strategy of expanding our core insurance business.
"Meadowbrook has a talented employee base, comprehensive offering of high-quality specialty insurance products, robust distribution network and a strong commitment to meeting the evolving needs of its policyholders."
Based in Southfield of Michigan, Meadowbrook provides specialty risk management solutions for agents, professional and trade associations, and small to medium-sized insureds.
The risk management firm has several agencies, claims and loss prevention facilities, self-insured management organizations and six property and casualty insurance underwriting companies. It has 28 locations in the US.
Meadowbrook Insurance Group president and CEO Robert Cubbin said: "Combining with Fosun further strengthens our capital base as we continue to focus on supporting the needs of our customers, partners and policyholders, improving our underwriting performance and driving profitability."
Subject to the approval of Meadowbrook’s shareholders as well as regulatory approvals, the transaction is expected to be completed in the second half of 2015.
Image: Fosun to acquire risk management organization Meadowbrook. Photo: courtesy of David Castillo Dominici / FreeDigitalPhotos.net.