Horace Mann to Acquire National Teachers Associates in $405 Million Transaction
10 Décembre 2018 - 10:05PM
Business Wire
- Aligns with focus on education
markets and strengthens value proposition
- Creates attractive returns for
shareholders through immediate EPS and ROE accretion
- Management to host conference call
at 5 p.m. ET today
Horace Mann Educators Corporation (NYSE:HMN) today announced it
has signed a definitive agreement to acquire National Teachers
Associates Life Insurance Company. National Teachers Associates
(NTA), through its subsidiaries, is a provider of supplemental
insurance products to the education market with nearly 50 years of
experience.
The combined company will have an enhanced product set,
additional points of distribution and expanded scale. The
transaction is expected to deliver immediate EPS and ROE accretion
with additional long-term upside from cross-sell opportunities.
Headquartered in Dallas, family-owned NTA specializes in
developing, marketing and underwriting supplemental insurance
products, including cancer and heart. The company has strong
worksite distribution capabilities with a captive sales force of
approximately 220 agents nationwide. For the 12 months ended
September 30, 2018, NTA premiums were approximately $130 million
and total core earnings were approximately $30 million.
“We are excited to welcome NTA's employees, agents,
policyholders and management to Horace Mann,” said President and
CEO Marita Zuraitis. “This transaction brings together two
organizations that share a deep commitment to the education market,
increasing our reach and distribution by more than 30% with limited
geographic overlap. The addition of NTA will accelerate our
progress toward becoming the company of choice to provide financial
solutions to the education market.”
“NTA was built on the belief that great people plus great
products equal great opportunities,” said Wade Rugenstein,
President and CEO of NTA. “Joining forces with Horace Mann, a
well-respected company and fellow leader in the education market,
is a natural evolution that will allow our company and our people
to reach their full potential.”
Under the terms of the transaction, Horace Mann will acquire NTA
for $405 million. The transaction has been approved by Horace
Mann’s Board of Directors and is expected to close in the second
quarter of 2019, pending regulatory approvals and other customary
closing conditions. After close, NTA will operate as a separate
Horace Mann business segment under its current leadership team.
In the 12 months after closing, the transaction is expected to
be $15-20 million accretive to Horace Mann’s earnings and to
improve ROE by 100 basis points. The transaction can be funded with
cash from the combined companies and $250 million of new senior
debt issued prior to closing, although Horace Mann may explore
additional financing options that could optimize its liquidity
position or further enhance ROE.
Advisors
Guggenheim Securities is acting as financial advisor to Horace
Mann and Eversheds Sutherland (US) LLP is acting as legal counsel
to Horace Mann.
Conference Call
Horace Mann will host a conference call to discuss the
transaction at 5 p.m. Eastern time (4 p.m. Central time). The
conference call will be accessible via the internet and by
telephone. The dial-in number for the conference call is
877-269-7756. To listen via webcast, register through the Events
section of investors.horacemann.com. A
replay of the call will be available online at the same
location.
About Horace Mann Educators Corporation
Horace Mann is the largest financial services company focused on
providing America's educators and school employees with insurance
and retirement solutions. Founded by Educators for Educators® in
1945, the company is headquartered in Springfield, Ill. For more
information, visit horacemann.com.
About National Teachers Associates Life Insurance
Company
Established nearly 50 years ago, NTA is a family owned company
headquartered in Dallas offering supplemental insurance products
for educators and other public sector employees. For more
information, visit ntalife.com.
Safe Harbor Statement and Non-GAAP Measures
Statements included in this news release that are not historical
in nature are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995 and are subject to certain
risks and uncertainties. Horace Mann is not under any obligation to
(and expressly disclaims any such obligation to) update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise. Please refer to the
company's Quarterly Report on Form 10-Q for the period ended
September 30, 2018, and the company's past and future filings and
reports filed with the Securities and Exchange Commission for
information concerning the important factors that could cause
actual results to differ materially from those in forward-looking
statements. Information contained in this press release includes
measures which are based on methodologies other than accounting
principles generally accepted in the United States (GAAP).
Reconciliations of non-GAAP measures to the closest GAAP measures
are contained in the Appendix to the Investor Supplement and
additional descriptions of the non-GAAP measures are contained in
the Glossary of Selected Terms included as an exhibit to the
company’s SEC filings.
No Offer or Solicitation
This communication is for informational purposes only and is not
intended to and does not constitute an offer to sell or the
solicitation of an offer to subscribe for or buy or an invitation
to purchase or subscribe for any securities or the solicitation of
any vote or approval in any jurisdiction pursuant to the
acquisition, the merger or otherwise, nor shall there be any sale,
issuance or transfer of securities in any jurisdiction in
contravention of applicable law. No offer of securities shall be
made except in accordance with the Securities Act of 1933, as
amended, and other applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181210005808/en/
Investor contact:Heather J. WietzelVice President,
Investor RelationsHorace
Mann217-788-5144investorrelations@horacemann.comorMedia
contact:Michelle EcclesPublic Relations ManagerHorace
Mann217-788-5394michelle.eccles@horacemann.com
Horace Mann Educators (NYSE:HMN)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Horace Mann Educators (NYSE:HMN)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024