Insurance provider Calliden Group has entered into an agreement to acquire Australian Unity's general insurance businesses, including Australian Unity General Insurance, Mansions of Australia and a 50% stake in Farmer's Mutual, for a total purchase price of $62.5 million.
The CEO of Calliden, Nick Kirk, said: We are acquiring a well-run and profitable business, which is complementary to Calliden’s existing business and consistent with our model of investing in specialized niches. The acquisition allows us to deepen our relationships with intermediaries, and to expand our presence in personal lines.
We are also very pleased that we will have Australian Unity (AU) as a major new strategic shareholder in our business and we look forward to working closely with AU in the future to develop new product lines in general insurance, Mr Kirk continued.
Mr Kirk also said: Calliden has been building momentum and capability through organic growth and also through targeted acquisitions. The acquisition of AU’s general insurance business represents a step change in scale for Calliden and is an exciting development for Calliden shareholders.
The completion date for the sale has been scheduled for July 31, 2007. Following the transaction, AU will be a 13% shareholder in Calliden.