Insurance business readies itself for $36M sale

TAMPA — Pompano Beach-based Meridian Insurance Holdings Inc. acquired Prepared Holdings LLC, the Tampa-based holding company for property and casualty insurance firm Prepared Insurance Co.

The deal calls for Meridian to pay a total all-cash purchase price of about $35.7 million, assuming a book value for Prepared Holdings of about $20.58 million at closing, according to a release. The purchase price will be reduced if the book value is less, but if Prepared Holdings' book value is appraised at below $19.45 million either company can cancel the sale. The purchase price includes the repayment of $3.7 million in debt at closing.

The purchase price will be paid through various credit lines and private equity investments in Meridian, according to the statement.

The board of managers/directors of both companies approved the sale, which is currently scheduled to close in October. The transaction is subject to approval by Prepared's membership and the Florida Office of Insurance Regulation.

Founded in 2009, Prepared Insurance reported total written premiums of $53.4 million in 2014.