Endurance Specialty To Buy Montpelier Re Holdings In $1.8 Bln Deal - Quick Facts

(RTTNews) - Endurance Specialty Holdings Ltd. (ENH) agreed Tuesday to acquire Montpelier Re Holdings Ltd. (MRH) for $40.24 per share in a cash and stock deal valued at $1.83 billion. The consideration includes 0.472 shares of Endurance and $9.89 in cash for each Montpelier common share.

The deal increases Endurance's scale and market presence by the addition of established third party capital management franchise as well as broadens its capabilities through the addition of Lloyd's franchise.

The offer price is valued at $40.24 per share, based on Endurance's closing price on March 30, 2015, and represents a 19 percent premium to Montpelier's unaffected closing price on December 10, 2014.

The aggregate consideration for the deal will consist of $450 million in cash and about 21.5 million Endurance ordinary shares, which are valued at about $1.4 billion.

Endurance expects to achieve more than $60 million of annual run-rate cost savings and to realize meaningful capital efficiencies from the acquisition. The deal is also expected to be immediately accretive to earnings per share and return on equity, excluding non-recurring integration and transaction costs.

Following completion of the transaction, Montpelier's existing shareholders will own about 32 percent of Endurance's outstanding ordinary shares.

The deal, unanimously approved by both companies' Boards of Directors, is expected to close in the third quarter of 2015, primarily subject to the approval of both companies' shareholders.

Funds affiliated with Charlesbank Capital Partners have agreed to vote their Montpelier common share stake in favor of the proposed deal.