Liberty Mutual to Acquire Florida Insurer
Liberty Mutual Group, the eighth-largest U.S. property casualty insurer, agreed to buy Summit Holding Southeast Inc. for $222.4 million, building its workers’ compensation insurance business in Florida. Summit, based in Lakeland, Fla., will add its 7% share of the Florida workers’ compensation market to Liberty Mutual, the largest U.S. provider of such coverage. The transaction will give Summit’s owners $33 for each of their 5.8 million shares, while redeeming Summit’s 1.64 million shares of preferred stock at a cost of about $17 million and transferring $14.3 million of debt to Liberty Mutual. The deal is expected to close by the end of September. Summit’s shares jumped $6.13 to close at $31.88 on Nasdaq.