Financial services company Unitrin has announced that its subsidiary, Trinity Universal Insurance Company, has entered into a definitive agreement to acquire Direct Response Corporation and its subsidiaries.
Trinity will acquire Direct Response in a cash transaction valued at approximately $220 million, subject to certain purchase price adjustments. The parties expect to close the transaction in the fourth quarter of 2008, subject to timely approvals by insurance regulators and the satisfaction of other customary closing conditions.
Direct Response sells personal automobile insurance directly to consumers under both the Response Insurance and Teachers Insurance Plan brand names.
Donald Southwell, Unitrin’s CEO, said: We are extremely pleased at the prospect of Direct Response joining the Unitrin family of companies. Direct Response will continue to market its products under the Response Insurance and Teachers Insurance Plan brand names and will be reported as part of the Unitrin Direct business segment.