M&A · Financials · Fire, Marine & Casualty Insurance
Liberty Mutual Insurance to acquire State Auto Financial Corp
Announced Jul 12, 2021 · Closed Mar 1, 2022
Deal value$2.29B
Premium201.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$52.00 per share
Transaction
- Acquirer
- Liberty Mutual Insurance
- Target
- State Auto Financial Corp (STFC)
- Buyer type
- Strategic
- Offer price per share
- $52.00
- Enterprise value
- —
- Status
- Closed Mar 1, 2022
Deal protections
- Break fee (target pays)
- $70.8M · 3.1%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Goldman Sachs
- To the target
- Houlihan Lokey, Stifel, BofA Securities
Sector context · Financials
- Comparable deals
- 39 in the prior 24 months
- Premium
- 201.0% vs. 42.7% sector median
- EV / Adj. EBITDA
- Sector median 21.6x
- Break fee
- 3.1% vs. 3.7% sector median
Timeline
- AnnouncedJul 12, 2021
- Proxy filedAug 9, 2021
- Definitive proxyAug 27, 2021
- Shareholder voteSep 29, 2021
- ClosedMar 1, 2022
Valuation · fairness opinions
Trading comparables$13.79$15.83
Trading comparables$32.18$37.73
Trading comparables$27.72$33.21
Precedent transactions$33.21$38.71
Discounted cash flow$37.26$45.22
Offer $52.00
Implied value per State Auto Financial Corp share by analysis, from Houlihan Lokey · DCF discount rate 9%–10%.