Business
Sale of United Coastal Closes
Sale of United Coastal Closes.
About this update from Acmat Corp.
[{"type":"text","content":"\r\n\r\n\r\nPRESS RELEASE\t\t\tNovember 22, 2005\r\n\t\t\t\t\t\r\n\t\t\t\t\tFor confirmation call:\r\nACMAT Corporation\t\t\t\tHenry W. Nozko, Jr.\r\n233 Main Street\t\t\tPresident\r\nNew Britain, CT 06050\t\t\t(860) 229-9000 \r\n\r\nACMAT Corporation Announces the Close of the Sale of\r\n United Coastal Insurance Company\r\n\r\n\r\nACMAT Corporation (\"ACMAT\") and its insurance subsidiary, ACSTAR Insurance Company (\"ACSTAR\") completed the sale of their shares of United Coastal Insurance Company (\"United Coastal\") to Rockhill Holding Company. United Coastal was wholly-owned by ACMAT and ACSTAR.\r\n\r\nThe purchase price of approximately $30 million was based upon United Coastal's net assets valued at market plus a premium for United Coastal's insurance authorizations. The transaction resulted in a one-time increase in ACMAT's net earnings of approximately $5 million.\r\n\r\nHenry W. Nozko, Jr., President of ACMAT, stated: \"ACMAT has significantly grown its surety insurance operations (ACSTAR Insurance Company) during the last several years and has deemphasized its excess and surplus insurance business. The transaction is in keeping with that strategy. ACSTAR will assume and service all of United Coastal's business written through the closing date.\"\r\n\r\nACMAT Corporation provides general building construction and designs, furnishes and installs interiors in commercial, industrial and institutional buildings. ACSTAR Insurance Company provides surety bonding nationwide to contractors and others and general liability in various jurisdictions. The Company's Common Stock (ACMT.PK) and Class A Common Stock (ACMTA.PK) are traded over-the-counter in the \"Pink Sheets\" quotation service.\r\n","length":1654,"tagName":"div"}]