By Lisa Kerner
Charlotte, N.C., April 23 - Liberty Mutual Group said it agreed to acquire Safeco Corp. for $68.25 per share to become the fifth-largest U.S. property and casualty insurer.
Total value of the transaction is $6.2 billion, according to a joint company news release.
The boards of directors of Liberty Mutual and Safeco approved the transaction, which is slated to close by the end of the third quarter of 2008, the release said.
According to Liberty Mutual, the acquisition is not subject to financing contingencies.
Once the transaction is completed, Safeco will become part of Liberty Mutual Group's agency markets business unit.
Liberty Mutual said it is currently the sixth-largest property and casualty insurer in the United States based on the company's 2007 direct written premium of $20.2 billion. Safeco had 2007 direct written premium of $5.9 billion.
"Safeco's operations and product mix complement our existing agency markets operations," Liberty Mutual chairman, president and chief executive officer Edmund F. Kelly stated in the release.
In light of the proposed transaction, Safeco postponed its May 7 annual meeting of shareholders. The company was advised by Morgan Stanley & Co., Inc.
Boston-based Liberty Mutual is a diversified insurer.
Safeco is a Seattle-based insurance company.
| Acquirer: | Liberty Mutual Group
|
| Target: | Safeco Corp.
|
| Announcement date: | April 23
|
| Transaction total: | $6.2 billion
|
| Price per share: | $68.25
|
| Expected closing: | Third quarter of 2008
|
| Stock price of target: | NYSE: SAF: $45.23 on April 22
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
