NU Online News Service, Aug. 1, 1:04 p.m. – Oak Hill Financial Inc., Jackson, Ohio, a banking holding company, has agreed to acquire Innovative Financial Services Inc., a Jackson insurance agency, for $2.7 million in unregistered Oak Hill common stock.
Innovative, which operates under the name McNelly, Patrick & Associates, sells health insurance, 401(k) plans and other employee benefits to 300 employers.
Oak Hill has set aside $180,000 for expenses related to the acquisition, but it says it will keep the McNelly name and the current agency managers. It expects the agency to earn $369,000 on $2.3 million in the first 12 months after it completes the acquisition.
Marsh, Berry & Company Inc., Concord, Ohio, an insurance management consulting firm, advised Oak Hill on the transaction.
Oak Hill already owns as consumer finance unit as well as bank. The company is acquiring Innovative because it wants to become a more diversified financial services provider, according to Oak Hill President John Kidd.
If the acquisition works out, “this can be a springboard for us into other areas of insurance,” Kidd said in a statement.