Meadowbrook, ProCentury Merger Moves On

Meadowbrook Insurance Group Inc. and ProCentury Corporation have executed a definitive merger agreement for a transaction valued at approximately $272.6 million in cash and stock to be paid to ProCentury shareholders. Under the terms of the merger agreement, which has been unanimously approved by the Boards of Directors of both companies, shareholders of ProCentury will be entitled to receive, for each ProCentury common share, either $20.00 in cash or Meadowbrook common stock having a value of $20.00, subject to adjustment as described below. This price represents a premium of 33% to the 30-day volume- weighted average sale price of ProCentury common shares. The combined entity will adopt and operate under the Meadowbrook name. The acquisition will reportedly expand and complement Meadowbrook's specialty lines capabilities with ProCentury's insurance professionals and product expertise in the excess and surplus lines market. Both companies are based in the Midwest and have similar employee cultures. Subsequent to the completion of the merger, the combined entity will continue to operate the respective insurance subsidiaries as they were operated prior to the merger.