Madrid, Spain-based insurer MAPFRE said it has completed its acquisition of personal lines insurer The Commerce Group Inc. of Webster, Mass.
MAPFRE said it paid $36.70 in cash per share of Commerce's publicly traded stock, with total merger consideration of $2.2 million as of the date of the closing. The deal is worth more than $2.2 billion.
Commerce, the largest auto and homeowners' insurer in Massachusetts, is licensed in all 50 states and has operations in 17 states.
MAPFRE said it intends to maintain Commerce's headquarters in Webster and will continue to write business in Massachusetts and across the United States through independent insurance agents.
Commerce will continue under the leadership of its current management team and its approximately 2,400 employees will retain their jobs.
The acquisition of Commerce was accomplished through the merger of a subsidiary of MAPFRE, Magellan Acquisition Corp., with Commerce. The business will continue to be known as The Commerce Group Inc.
"This is an important day in the history of MAPFRE," said Jos? Manuel Mart?nez Mart?nez, chairman of MAPFRE. "Not only is the acquisition of Commerce the largest in the history of our company, but it fits perfectly with MAPFRE?s growth strategy and commitment to turn into a global insurance group. Furthermore, it represents a decisive step in MAPFRE's international expansion, especially in the United States."
Commerce Chairman and Chief Executive Officer Gerald Fels said "becoming a part of the MAPFRE Group benefits all of Commerce's stakeholders, and we are proud that we have grown our company from a small startup in 1971 to a $2 billion business that today becomes part of one of the world's leading insurance groups. This transaction underscores the commitment of our founder, our shareholders, directors and employees over the last 37 years to building a world-class business."
MAPFRE said it is the largest insurer in Spain and 11th largest non-life insurer in Europe by premium. The 75-year-old company has a presence in 43 countries, more than 31,000 employees and over 13 million clients around the world. The company said it had more than EUR15.2 billion ($23.6 billion).
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.