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Editor's note: On April 6, 2001, the New
York Department of Insurance approved American National Insurance Co.'s
acquisition of Farm Family Holdings. Farm Family shareholders had
previously approved the deal on Feb. 27, 2001, and the companies expect
to close the transaction on April 10, 2001.
Seeking to grow its business in the Northeast
and to tap into agricultural markets across the United States, American
National Insurance Co. will merge with Farm Family Holdings.
| "We view this as an opportunity to increase the strength of both companies." |
American National will
acquire Farm Family for $44 per share for Farm Family's common stock
and $35.72 per share for its preferred stock. The value of the deal is
estimated to be worth $280 million. The deal is expected to be
completed late in the first quarter of 2001.
American National, based in Galveston, Texas, sells individual and group life insurance, group health insurance, auto
and homeowners insurance, credit insurance, and mutual funds. Farm
Family, based in Albany, N.Y., sells auto and homeowners insurance to
farm-related businesses, as well as life insurance, annuities, and
disability insurance.
Gregory Ostergen, president and CEO of
American National Property and Casualty Co., a subsidiary of American
National, says the deal will give his company three insurance companies
domiciled in New York: Farm Family Casualty Insurance Co., Farm Family
Life Insurance Co., and United Farm Family Insurance Co. He says that
will allow his company to expand in the Northeast, as well as into
other agricultural markets throughout the U.S.
"This is part of our strategic plan to
add strong companies to our existing financial services network," he
says. "We view this as an opportunity to increase the strength of both
companies."
The deal is subject to approval from the New
York Department of Insurance and Farm Family's stockholders. The
companies expect the deal to be completed by the first quarter of 2001.
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