Dearborn, Mich.-based Auto Club Insurance Association (ACIA) said yesterday it has agreed to acquire MEEMIC Insurance Company and its insurance agency affiliate, MEEMIC Insurance Services Corp., for an undisclosed amount.
ACIA is an affiliate of AAA Auto Club Group, which provides membership, travel and financial services to over 4.1 million AAA members in eight states: Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota and Wisconsin.
MEEMIC, formerly known as Michigan Educational Employees Mutual Insurance Company, is headquartered in Auburn Hills, Mich., and provides auto, homeowners, boat and umbrella insurance to employees of educational institutions and their families, ACIA said.
It added that MEEMIC is owned by GMAC Financial Services and its affiliates and the company workforce includes approximately 130 employees and a network of more than 70 captive agents primarily serving customers in Michigan.
ACIA describes itself as the second largest provider of auto insurance in Michigan based on net premiums written. It offers personal lines insurance products and services through a network of 725 captive agents and more than 1,000 independent agents located throughout the Midwest.
The company said its acquisition will provide access to "a complementary, highly attractive market segment, a platform for growth in other states and economic synergies."
Following the closing, ACIA said MEEMIC will operate as a wholly-owned subsidiary. It will be managed separately from ACIA's existing insurance operations and continue to operate under the MEEMIC name.
The transaction is expected to close early in the second quarter of 2009, subject to applicable legal and regulatory approvals.
Friedman, Billings, Ramsey & Co. Inc. served as exclusive financial advisor on the deal and Locke Lord Bissell & Liddell LLP acted as outside legal counsel to ACIA in connection with the acquisition.
Bank of America Merrill Lynch and Foley & Lardner LLP served as exclusive financial advisor and outside legal counsel, respectively, to GMAC.
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