By Angela McDaniels
Tacoma, Wash., March 13 - National Atlantic Holdings Corp. said it entered into a definitive merger agreement to be acquired by Palisades Safety and Insurance Association for $6.25 in cash per share.
The merger will provide Palisades the opportunity to expand product offerings beyond private passenger auto, Palisades said in a news release on Thursday.
National Atlantic will be merged with Palisades Safety subsidiary Apollo Holdings, Inc., with National Atlantic continuing as a wholly owned subsidiary of Palisades Safety and led by Apollo Holdings management.
The merger agreement includes a $2.1 million termination fee payable to Palisades Safety.
The board of directors of National Atlantic has approved the merger agreement and recommends that National Atlantic's shareholders do the same, according to a National Atlantic news release.
Subject to approval from National Atlantic shareholders and the receipt of regulatory approvals, the merger is expected to close in the third quarter. There is no financing condition.
"The acquisition of National Atlantic by Palisades represents an outstanding opportunity to combine two of the leading New Jersey property-casualty insurers into a cohesive, highly competitive and efficient organization," James V. Gorman, National Atlantic chairman and chief executive officer, said in the release. Gorman has agreed to vote his shares in favor of the merger.
Freehold, N.J.-based National Atlantic and its subsidiaries provide property and casualty insurance and insurance-related services.
Palisades Safety is a licensed insurance exchange based in Berkeley Heights, N.J.
| Acquirer: | Palisades Safety and Insurance Association
|
| Target: | National Atlantic Holdings Corp
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| Announcement date: | March 13
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| Price per share: | $6.25
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| Termination fee: | $2.1 million
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| Expected closing: | Third quarter of 2008
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| Stock price of target: | Nasdaq: NAHC: $5.46 on March 12
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