Dental and vision benefits to boost company’s growth plans
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
Unum (NYSE: UNM) today announced it has entered into a definitive
agreement to acquire H&J Capital, LLC, parent of Starmount Life
Insurance Company and AlwaysCare Benefits (“Starmount”), a leading
independent dental and vision benefits company that will expand Unum’s
growing portfolio of workplace financial protection products.
“We are excited to be adding Starmount’s capabilities to our
market-leading offerings in the workplace,” said Unum President and CEO
Rick McKenney. “This strategic transaction is a perfect fit for both our
Unum US and Colonial Life businesses, as we expand our customer
relationships in pursuit of our growth objectives.”
Unum is a leading nationwide provider of financial protection benefits
at work, including disability, life and supplemental health products.
Starmount covers more than 940,000 lives nationally, manages in-force
annualized premium in excess of $180 million and has access to
significant national dental and vision networks.
Starmount was founded by the Sternberg family in 1983. The company is
licensed in 49 states and the District of Columbia and markets
individual products under the Starmount Life brand, including dental,
vision, life and accident. Its group and voluntary benefits are marketed
under the AlwaysCare Benefits brand and include dental, vision, life,
disability, critical illness and accident.
Unum is acquiring Starmount for $127 million plus net assets. The
transaction will not alter the company’s earnings or capital management
outlook for 2016, nor does it change Unum’s overall capital management
strategy of investing in its business while also returning capital to
shareholders through share repurchases and dividends. It is expected to
be neutral to accretive to Unum’s earnings per share in 2017.
“We see strong demand for dental and vision insurance, and the Starmount
business will help us expand access to these benefits at the workplace,”
said Unum US President Mike Simonds.
Starmount will remain headquartered in Baton Rouge, La., with a
leadership team including CEO Erich Sternberg and President Deborah
Sternberg and the entire staff of more than 220 employees.
“Unum shares our company values of providing exceptional service,
innovative products and thoughtful solutions for our customers,” said
Starmount CEO Erich Sternberg. “We look forward to helping this business
continue to grow and prosper in the years ahead.”
Subject to regulatory approvals and customary closing conditions, the
transaction is expected to close by the end of the third quarter.
Barclays Capital served as financial advisor and Sutherland Asbill &
Brennan LLP as legal advisor to Unum. MTS Health Partners, L.P. served
as financial advisor and Bass Berry & Sims PLC served as legal advisor
to Starmount.
A summary of facts regarding the transaction is available here.
ABOUT UNUM GROUP
Unum Group (www.unum.com)
is a leading provider of financial protection benefits in the United
States and the United Kingdom. Its primary businesses are Unum US,
Colonial Life and Unum UK. Unum’s portfolio includes disability, life,
accident and critical illness coverage, which help protect millions of
working people and their families in the event of an illness or injury.
The company reported revenues of $10.7 billion in 2015, and provided
$6.8 billion in benefits.
ABOUT STARMOUNT LIFE AND ALWAYSCARE BENEFITS
Starmount Life Insurance Company (www.starmountlife.com)
is a national insurance carrier admitted in 49 states and D.C., and
AlwaysCare Benefits is a nationally licensed, third-party administrator.
Known for exceptional service and customer satisfaction, Starmount Life
and AlwaysCare Benefits are national providers and administrators of
life and supplemental insurance, including dental and vision, for
individuals and groups.
SAFE HARBOR STATEMENT
Certain information in this press release constitutes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are those not based on
historical information, but rather relate to our outlook, future
operations, strategies, financial results, or other developments, may
include words such as “expects,” “anticipates,” “intends,” “plans,”
“believes,” “estimates,” and similar expressions, and speak only as of
the date made. These forward-looking statements, including statements
regarding the timing of the closing of the acquisition, are subject to
numerous assumptions, risks, and uncertainties, many of which are beyond
our control. Forward-looking statements involve known and unknown risks
and uncertainties that may cause our actual future results to differ
materially from those projected or contemplated in the forward-looking
statements.
These risks and uncertainties include, but are not limited to, the
satisfaction of the closing conditions for the acquisition, the timing
and receipt of regulatory approval for the acquisition, our ability to
effectively manage growth and our ability to effectively execute and
integrate acquisitions. Given the risks and uncertainties inherent in
forward-looking statements, any of our forward-looking statements could
be incorrect and investors are cautioned not to place undue reliance on
any of our forward-looking statements.
For further discussion of risks and uncertainties which could cause
actual results to differ from those contained in the forward-looking
statements, see Item 1A. “Risk Factors” of our annual report on Form
10-K for the year ended December 31, 2015 and, to the extent applicable,
our subsequent quarterly reports on Form 10-Q. The forward-looking
statements in this press release are being made as of the date of this
press release, and the Company expressly disclaims any obligation to
update or revise any forward-looking statement contained herein, even if
made available on our website or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160404006525/en/
Unum Group
Investors:
Tom White, 423-294-8996
Matt
Barnett, 423-294-7498
or
Media:
MC Guenther,
423-294-6108; 866-750-8686
Rene Milligan, 225-400-9137
Source: Unum Group