Deal Profile – Mutual Savings Life
Relevant Statistics: |
Transaction value: $95.6 million |
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Background: |
Primesco, through it’s subsidiaries Mutual Savings Life Insurance Company and Mutual Savings Fire Insurance Company, specializes in the sale of life, health and fire insurance products to people of modest financial means in the Southeast. The company’s home service-focused distribution and servicing for small face value life insurance policies utilizes a captive sales force located in six Southeastern states. Primesco owners purchased the company from its ESOP in 1998 through a highly leveraged transaction. |
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Investment Banking Role: |
On April 1, 2008, Decatur, Alabama-based Primesco, Inc. announced the completion of its acquisition by Unitrin, Inc. for $95.6 million in an all-cash deal. Over the course of almost 12 months, Raymond James assisted Primesco in developing and distributing descriptive information about Primesco operations, identifying and contacting approximately 30 potential acquirers, and assisting Primesco in negotiating and structuring a transaction with Unitrin. |
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Successful Outcome: |
As a result of the transaction, Primesco owners were able to realize cash value for their ownership interests and Unitrin expanded its presence in the home service insurance market. At transaction close, Unitrin expected the deal to be slightly accretive to 2008 earnings. |
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Unitrin is a $3 billion financial services company that provides a diverse array of insurance and automobile finance products and services for individuals, families and small businesses. Among the brands in Unitrin's Property and Casualty Insurance businesses are Kemper, Unitrin Specialty and Unitrin Business Insurance, which sell personal and commercial insurance through networks of independent agents, and Unitrin Direct, which sells automobile and homeowners insurance directly to consumers or through employer-sponsored voluntary benefit programs. Unitrin's Life and Health Insurance business’s leading product is ordinary life insurance including permanent and term. Unitrin's common stock is traded on the NYSE under the symbol UTR.