Ceres Group Signs Definitive Merger Agreement With Great American Financial Resources
02 5월 2006 - 6:30AM
Business Wire
Ceres Group, Inc. (NASDAQ:CERG) announced today that it has entered
into a definitive merger agreement with Great American Financial
Resources, Inc. ("GAFRI") (NYSE:GFR), a 81%-owned subsidiary of
American Financial Group, Inc. (NYSE:AFG) whereby GAFRI will
acquire all of the outstanding shares of common stock of Ceres
through a cash merger. Under the terms of the merger agreement,
GAFRI will pay $6.13 in cash for each outstanding share of Ceres
common stock, for a total equity price of approximately $205
million on a fully diluted basis. "Today we begin the next
evolutionary phase of the Ceres Group of companies," said Tom
Kilian, president and chief executive officer. "As a public
company, one of our core objectives has always been to maximize
shareholder value. Our merger with GAFRI accomplishes this
objective, and we are confident that it will also provide synergies
and market strength that will benefit customers and agents. Ceres
and GAFRI are an excellent strategic fit. This merger will produce
a much larger senior market presence and strengthened combined
competitive position. We are committed to working with GAFRI on a
smooth transition." S. Craig Lindner, president and CEO of GAFRI,
commented on the transaction by saying, "The acquisition of Ceres
is consistent with our strategy of using our excess capital to grow
our core lines of business. We believe Ceres is a very good
strategic fit with our existing supplemental health businesses. We
believe that post-acquisition GAFRI will be one of the top ten
producers of Medicare supplement products. In addition, the
acquisition will provide opportunities for us to make annuities and
other products available to the Ceres distribution network. We
intend to focus on completing the Ceres acquisition while
continuing to look for opportunities to grow and strengthen our
core businesses through acquisitions." The Ceres board of directors
approved the transaction. The transaction is expected to be
completed in Ceres' third fiscal quarter of 2006. The transaction
is subject to the approval of Ceres' stockholders and the Ohio and
Nebraska Departments of Insurance and other customary conditions,
including regulatory approvals. UBS Investment Bank and Cochran
Caronia Waller LLC have acted as financial advisors to Ceres on
this transaction. Ceres has approximately 600 employees, located at
its Cleveland, OH headquarters and at offices in Omaha, NE, and
Mission, KS. In connection with Ceres' solicitation of proxies with
respect to the meeting of stockholders to be called with respect to
the proposed merger, Ceres will file with the Securities and
Exchange Commission, and will furnish to stockholders of Ceres, a
proxy statement. Stockholders are advised to read the proxy
statement when it is finalized and distributed to stockholders
because it will contain important information. Stockholders will be
able to obtain a free-of-charge copy of the proxy statement (when
available) and other relevant documents filed with the SEC from the
SEC's website at www.sec.gov. Stockholders will also be able to
obtain a free-of-charge copy of the proxy statement and other
relevant documents (when available) by directing a request by mail
or telephone to Ceres Group, Inc., 17800 Royalton Road, Cleveland,
OH 44136, Attention: Corporate Secretary, Telephone: 440-572-2400,
or from Ceres' website, www.ceresgp.com. Ceres and certain of its
directors, executive officers and other members of management and
employees may, under the rules of the SEC, be deemed to be
"participants" in the solicitation of proxies from stockholders of
Ceres in favor of the proposed merger. Information regarding the
persons who may be considered "participants" in the solicitation of
proxies will be set forth in Ceres' proxy statement when it is
filed with the SEC. Information regarding certain of these persons
and their beneficial ownership of Ceres' common stock as of March
27, 2006 is also set forth in the Schedule 14A filed by Ceres on
April 3, 2006 with the SEC. About Ceres Group Ceres Group, Inc.,
through its insurance subsidiaries, provides a wide array of health
and life insurance products through two primary business segments.
Ceres' Medical Segment includes major medical health insurance for
individuals, families, associations and small businesses. The
Senior Segment includes senior health, life and annuity products
for Americans age 55 and over. To help control medical costs, Ceres
also provides medical cost management services to its insureds.
Ceres' nationwide distribution channels include independent and
career agents, as well as electronic distribution systems. Ceres is
included in the Russell 3000(R) Index. For more information, visit
www.ceresgp.com. About GAFRI GAFRI is a Cincinnati-based insurance
holding company with nearly $12 billion in assets. The Company's
subsidiaries include Great American Life Insurance Company, Annuity
Investors Life Insurance Company, United Teacher Associates Life
Insurance Company (headquartered in Austin, Texas) and Loyal
American Life Insurance Company. Through these companies, GAFRI
markets traditional fixed, indexed and variable annuities and a
variety of supplemental insurance products. For more information,
visit www.gafri.com. This news release contains certain
forward-looking statements with respect to the expected timing,
completion and effects of the proposed merger. Forward-looking
statements are statements other than historical information or
statements of current condition. In light of the risks and
uncertainties inherent in all future projections, the inclusion of
forward-looking statements herein should not be regarded as
representation by the company or any other person that the
objectives or plans of the company will be achieved. Many factors
could cause actual results to differ materially from those
contemplated by such forward-looking statements, including, among
others, failure to obtain stockholder approval or the failure to
satisfy other closing conditions, including regulatory approval.
This review of important factors should not be construed as
exhaustive. Investors and others should refer to Ceres' filings
with the Securities and Exchange Commission, including its annual
report on Form 10-K for the year ended December 31, 2005, and its
quarterly reports on Form 10-Q and other periodic filings, for a
description of the foregoing and other factors. Ceres undertakes no
obligation to update forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events.
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