- Liberty Mutual enters agreement to acquire State Auto Financial Corporation…
- Sixth largest home and auto insurer in the country to move up in the ranks…
- Deal values regional insurer at more than $2 billion…
The world of auto insurance is abuzz amid news of a big acquisition deal that is sending shares of one Ohio-based company sharply higher.
State Auto Financial Corporation (NASDAQ: STFC) announced today it had agreed to be acquired by Liberty Mutual Holding Company Inc.
“Under the terms of the agreement, State Auto mutual members will become mutual members of Liberty Mutual and Liberty Mutual will acquire all of the publicly held shares of common stock of State Auto Financial for $52 per share in cash.”
$STFC surged on news of the deal and was trading nearly 200% higher at writing.
Liberty Mutual Chairman and CEO David Long said, “State Auto Group’s capabilities and product expertise are an ideal complement to Liberty Mutual’s domestic personal lines and small commercial business, and we welcome 2,000 talented associates to our family.
“Equally appealing are its values. For almost a century, State Auto has celebrated a culture of caring for people, exceptional service and deep philanthropy, mirroring our purpose to help people embrace today and confidently pursue tomorrow.”
State Auto President and CEO Mike LaRocco said, “The opportunity to join the Liberty Mutual organization is a direct result of the incredible work of the State Auto team, beginning with the transformation of our business and culture that began in 2015.”
“We’ve become a digital provider of auto, home and business insurance while remaining fully committed to the independent agency system, as we’ve been since our founding 100 years ago. Our partnership with Liberty Mutual will further that commitment to independent agents and contribute to the collective success of our agents, policyholders, shareholders and associates.”
Closer Look at The Deal
- With 44.05 million shares outstanding, the acquisition values State Auto at $2.29 billion
- The transaction has been approved by State Auto’s Board of Directors
- Deal expected to close in 2022, pending approval from State Auto members, shareholders, and regulators
- Liberty Mutual will add $2.3 billion in premium and State Auto’s network of approximately 3,400 independent agencies across 33 states
- Liberty Mutual is expected to become the second-largest carrier in this key distribution channel
- State Auto is based in Columbus, OH
- Liberty Mutual is headquartered in Boston, MA
- Liberty Mutual employs more than 45,000 people in 29 countries and economies around the world
- Liberty Mutual currently distributes its Safeco Insurance personal auto, homeowners, and specialty products, and Liberty Mutual small business insurance through more than 10,000 independent agencies countrywide
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