NU Online News Service, Sept. 26, 10:47 a.m. – Clark/Bardes Inc., North Barrington, Ill., says its consulting arm has agreed to acquire Long, Miller and Associates L.L.C., Greensboro, N.C., for $405 million.
Long, Miller sells business-owned life insurance services. Clark/Bardes is also a major BOLI distributor.
Robert Long Jr., co-founder of Long, Miller, would join the Clark/Bardes board, and the Long, Miller office in Greensboro would continue to service large financial institutions.
Clark/Bardes says it wants to pay for the acquisition by issuing $20 million in new common stock, using $80 million in credit from an existing credit facility, and taking out $305 million in new loans.
The new debt would be secured by the stream of commission payments and other payments expected from Long, Miller’s in-force policies.
Clark/Bardes hopes to complete the deal by October, but it emphasizes that there are no guarantees.
“The completion of the purchase is subject to customary conditions, including Clark/Bardes Consulting’s ability to raise the funds necessary to complete the acquisition, and there are no assurances it will be completed on a timely basis or at all,” Clark/Bardes says.