Summary
This 8-K filing from The Allstate Corporation (ALL) announces the definitive completion of its acquisition of National General Holdings Corp. (National General) on January 4, 2021. The transaction, which was initially announced on July 7, 2020, involved a merger whereby National General became a wholly-owned subsidiary of Allstate. The acquisition was structured as a cash and stock deal, with National General shareholders receiving $32.00 in cash per share, plus a special pre-closing dividend of $2.50 per share, totaling $34.50 per share. In conjunction with the merger, Allstate also entered into a Third Supplemental Indenture, adding itself as a guarantor for National General's outstanding 6.750% Senior Notes due 2024, which have an aggregate principal amount of $350 million. This filing confirms the closing of the acquisition, a significant strategic move for Allstate, likely aimed at expanding its market presence and product offerings in the property and casualty insurance sector.
Key Highlights
- 1Allstate Corporation has successfully completed the acquisition of National General Holdings Corp. as of January 4, 2021.
- 2National General shareholders received $32.00 in cash per share plus a $2.50 special pre-closing dividend, totaling $34.50 per share.
- 3The acquisition was completed via a merger, with National General becoming a wholly-owned indirect subsidiary of Allstate.
- 4Allstate has become a guarantor for National General's outstanding $350 million in 6.750% Senior Notes due 2024.
- 5The transaction was executed under the terms of an Agreement and Plan of Merger dated July 7, 2020.
- 6Options and restricted stock units for National General common shares were cancelled and converted into cash payments reflecting the merger consideration and dividend, less exercise prices for options.