American Annuity Group Acquires Laurentian Capital Corp for $105.6 Million

Strategic Insights -

Laurentian Capital Corp, a Philadelphia-based company, has been acquired by American Annuity Group Inc. for approximately $105.6 million in cash. The acquisition will result in American Annuity Group repaying around $45 million of Laurentian Capital's long-term debt. The deal is subject to regulatory approvals and is expected to be completed in the fourth quarter of 1995.

Key Takeaways:

  • American Annuity Group Inc. will acquire all of the common stock of Laurentian Capital Corp for an aggregate price of approximately $105.6 million in cash.
  • The acquisition includes an option to purchase Laurentian Capital stock owned by Desjardins Laurentian Financial Corp for $13.875 per share.
  • The outstanding Series A Preferred Stock of Laurentian Capital is to be redeemed prior to closing of the transaction.
  • American Annuity Group will provide financial strength and resources to Laurentian Capital, while gaining access to new markets and distribution channels.
  • Laurentian Capital will be enhanced by becoming part of a financially larger group, providing resources to fully realize its growth opportunities.
  • American Annuity Group markets individual and group annuities nationwide through its wholly-owned subsidiaries, Great American Life Insurance Co., Lifestyle Financial Investments Inc., and Retirement Resources Group Inc.
  • Laurentian Capital sells life and health insurance to the pre-need, financial institution, and payroll deduction markets through its wholly-owned subsidiaries, Loyal American Life Insurance Co. and Prairie States Life Insurance Co.

Statistics:

  • American Annuity Group has approximately $5.3 billion in assets and $4.7 billion of reserves for annuities as of March 31, 1995.
  • Laurentian Capital has assets of approximately $1.0 billion and total life insurance in force in excess of $2.6 billion.
  • The acquisition is expected to be completed in the fourth quarter of 1995.
  • American Annuity Group will pay $13.875 per share for the shares beneficially owned by Desjardins Laurentian Financial Corp and $14.125 for all other Laurentian Capital shares.

Sources:

  • "American Annuity Group Inc. (NYSE:AAG) and Laurentian Capital Corp. (AMEX:LQ) Announce Agreement for AAG to Acquire Laurentian Capital" ( BusinessWire, May 26, 1995)