Compelo Insurance is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More
Close
Dismiss

Tower To Acquire SUA In $107m Transaction

SUA shareholders would receive 0.28 shares of Tower for each share of SUA

Tower Group (Tower), a provider of property and casualty insurance products and services, has entered into a definitive agreement with Specialty Underwriters’ Alliance (SUA), a property and casualty insurance company, to acquire the latter at $107 million.

As per the agreement, SUA shareholders would receive Tower common stock equal to $6.72, which is equal to 0.28 shares of Tower for each share of SUA, of $24. The transaction is expected to close approximately at the end of 2009.

Tower projects that its 2010 diluted earnings per share (EPS) will be in between $3.50 and $3.70, which accounts for the additional shares expected to be issued. The combination of Tower’ and SUA’ specialty businesses is expected to creates a much larger, more scalable and profitable specialty business with strong growth potential.

Tower has retained Debevoise & Plimpton as its legal advisor. FBR Capital Markets acted as SUA’ exclusive financial advisor, and Stroock & Stroock & Lavan acted as SUA’ independent legal advisor.