PRESS RELEASE September 23, 2005
For confirmation call:
ACMAT Corporation Henry W. Nozko, Jr.
233 Main Street President
New Britain, CT 06050 (860) 229-9000
ACMAT Corporation Announces Sale of United Coastal Insurance Company
ACMAT Corporation ("ACMAT") and its insurance subsidiary, ACSTAR Insurance Company ("ACSTAR") entered into a Stock Purchase Agreement today to sell their shares of United Coastal Insurance Company ("United Coastal") to Rockhill Holding Company. United Coastal is wholly-owned by ACMAT and ACSTAR. The sale, which is expected to close on or before January 31, 2006, is subject to certain conditions including a financing contingency and regulatory approvals.
The purchase price of approximately $30 million is based upon United Coastal's net assets valued at market at the closing date plus a premium for United Coastal's insurance authorizations. Upon closing, this transaction will result in a one-time increase in ACMAT's net earnings of approximately $5 million.
Henry 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."
ACMAT Corporation provides general building construction and designs, furnishes and installs interiors in commercial, industrial and institutional buildings. The Company's Insurance Group, which includes ACSTAR Insurance Company and United Coastal Insurance Company, provides surety bonding, specialty general, pollution, asbestos, products and professional liability insurance, nationwide, to contractors, property owners, storage and treatment facilities, manufacturers and allied professionals.