Industrial Alliance Insurance and Financial Services Inc. has agreed to acquire the outstanding shares of American-Amicable Holding Inc. for about $144 million in cash, including about $45 million in excess capital.
Industrial Alliance, Quebec City, Quebec (TSX:IAG), says the deal will be financed from cash on hand through its U.S. subsidiary, IA American Life Insurance Company, Scottsdale, Ariz.
Industrial Alliance is hoping to complete the deal this summer.
Acquiring American-Amicable, Waco, Texas, will give Industrial Alliance a stable stream of revenues and profits, a low-risk investment portfolio, a strong distribution system and an experienced management lineup, according to Industrial Alliance President Yvon Charest.
“Its life insurance products target the middle-income market, which is under-served and offers significant growth opportunities,” Charest says in a statement.