First Acceptance to Acquire Titan Non-Standard Automobile Insurance Agencies
27 Avril 2015 - 10:30PM
First Acceptance to Acquire Titan
Non-Standard Automobile Insurance Agencies
NASHVILLE, TN, April 27, 2015 -- First Acceptance
Corporation (NYSE: FAC), d/b/a Acceptance Insurance, a leader in
the non-standard automobile insurance industry, announced today
that it has entered into an agreement to acquire certain assets of
Titan Insurance Services, Inc. and Titan Auto Insurance of New
Mexico, Inc. (the "Titan Agencies"). These agencies sell private
passenger non-standard automobile insurance principally in
California, but also in Texas, Arizona, Florida, Nevada and New
Mexico. The Titan Agencies are owned and operated by Nationwide.
Through these Titan-branded stores, the Titan Agencies sell
policies through both Nationwide and other unrelated insurance
companies.
Under the terms of the transaction, First
Acceptance will pay a total of $34.5 million in cash for the assets
of 83 retail stores. The transaction is expected to close effective
July 1, 2015, and is subject to customary closing conditions. The
Company is currently in negotiations to partially finance the
acquisition.
First Acceptance plans to rebrand the stores under
its Acceptance Insurance name. These new Acceptance stores will
initially continue to write policies for both Nationwide and other
unrelated insurance companies. Going forward, First Acceptance
plans to develop its own products in California, Arizona, Nevada
and New Mexico, and introduce its current Texas and Florida
products into these stores. First Acceptance is currently in
process of obtaining an insurance company license in California and
is already licensed in the three other states where it does not
currently write business.
The Company's President and Chief Executive
Officer, Joe Borbely stated, "This is a pivotal opportunity for
Acceptance that will help us further our goal of expanding our
geographic reach. California is the nation's largest market for
private passenger non-standard automobile, and we look forward to
launching our brand there as well as these other western states.
The Titan Agencies are extremely well run, and Acceptance will be
retaining all current Titan associates. We are excited to partner
with such a terrific team".
Wachtell, Lipton, Rosen & Katz is serving as
legal counsel to First Acceptance.
About First Acceptance
Corporation
First Acceptance Corporation is a provider of
non-standard personal automobile insurance and other related
products. Headquartered in Nashville, TN, First Acceptance
Corporation markets its services through the Acceptance Insurance,
Yale Insurance, and Insurance Plus brands. The Company operates
over 350 retail locations in 13 states staffed with
employee-agents. In addition to our retail locations, customers are
also able to complete the entire sales process over the phone via
our call center or through either our consumer-based website or
mobile platform. For more information, visit
acceptanceinsurance.com.
Forward-looking
Statements
Statements about the expected timing, completion
and effects of the proposed acquisition and all other statements in
this document, other than historical facts, constitute
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Readers and security holders are cautioned not to place undue
reliance on these forward-looking statements and any such
forward-looking statements are qualified in their entirety by
reference to the following cautionary statements. All
forward-looking statements speak only as of the date hereof and are
based on current expectations and involve a number of assumptions,
risks and uncertainties that could cause the actual results to
differ materially from such forward-looking statements. First
Acceptance Corporation, or the Company, may not be able to complete
the proposed acquisition on the terms described above or other
acceptable terms or at all because of a number of factors,
including the failure to satisfy the closing conditions. Factors
that may affect the business or financial results of the Company
are described in the risk factors included in the Company's filings
with the Securities and Exchange Commission, including the
Company's 2014 Annual Report on Form 10-K and other reports filed
with the Securities and Exchange Commission and available at the
SEC's website at www.sec.gov, which factors are incorporated herein
by reference. The Company expressly disclaims a duty to provide
updates to forward-looking statements, whether as a result of new
information, future events or other occurrences.
SOURCE: First Acceptance
Corporation
INVESTOR RELATIONS
CONTACT:
Michael J. Bodayle
615.844.2885
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: First Acceptance Corporation via
Globenewswire
HUG#1914990
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