Employers Holdings has executed a definitive agreement to acquire AmCOMP Incorporated in a transaction valued at approximately $230 million, including the assumption of $37 million in debt.
The acquisition will expand Employers workers’ compensation insurance operations to a total of 26 states. Under the terms of the merger agreement, which has been approved by the boards of directors of both the companies, holders of AmCOMP’s approximately 15 million common shares will receive $12.50 in cash for each share. Employers is expecting to finance the purchase price through a combination of cash and debt. The transaction is expected to be completed in the second quarter of 2008.
Douglas Dirks, president and CEO of Employers Holdings, said: The acquisition significantly accelerates growth in our expansion states as well as opens up new markets in our small business workers’ compensation line – the key focus of our company. AmCOMP’s sales force of over 900 agencies will greatly expand our distribution system in both new and existing states. Equally as important, we will add to our staff nearly 500 experienced and knowledgeable AmCOMP professionals.