Brooke Corp. has agreed to acquire a majority interest in First American Capital Corp.
The agreement calls for Brooke, Overland Park, Kan., to pay $3 million for First American, Topeka, Kan., parent of First Life America Corp., which sells life insurance and annuity products. First American also owns First Life Brokerage Inc., a broker of life, health, disability and annuity products underwritten by a variety of carriers.
Brooke initially would acquire about 47% of First American Capital’s outstanding common stock, with a warrant to acquire additional stock that, when exercised, would increase its ownership to about 55% of First American stock.
The agreement also provides that Brooke would pay as much as $6 million in additional cash to First American if the life insurance brokerage unit failed to generate $6 million in pretax profits within 3 years.