Meadowbrook Insurance Group Inc. said it will merge with ProCentury Corporation in a cash and stock transaction worth $273 million.
The Southfield, Mich.-based insurer said that shareholders of ProCentury would receive either $20 in cash or Meadowbrook common stock valued at $20 per share for each share of ProCentury stock, subject to adjustments. The stock value represents a premium of 33 percent over ProCentury's common stock based on the 30-day average share price, Meadowbrook said. The cash portion of the deal will be financed through a combination of cash and debt.
The deal is expected to be completed in the third quarter of 2008, subject to regulatory and shareholder approval.
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