Mutual Capital Group to acquire ICC Holdings for $73.8m in all-cash deal

In a significant expansion of its financial services portfolio, Mutual Capital Group, Inc. (MCG), headquartered in Wyalusing, Pennsylvania, has announced a definitive merger agreement to acquire all outstanding shares of ICC Holdings, Inc. (NASDAQ: ICCH) for $23.50 per share in cash. This deal, valued at approximately $73.8 million, marks a strategic enhancement for Mutual Capital Group’s operations.

Strategic Implications of the Acquisition

The agreed acquisition price represents a 48% premium over ICCH’s last 30-day volume weighted average stock price and a 42% premium to its 52-week high. With an equity value pegged at 1.07 times ICCH’s March 31, 2024 book value, the transaction underscores the financial robustness and potential synergies between the entities involved.

The boards of directors of both companies have unanimously approved the merger, which is slated for completion in the fourth quarter of 2024. The closure of the deal is contingent upon customary closing conditions, including approval from ICCH shareholders and regulatory green lights.

Mutual Capital Group, Inc. announces the acquisition of ICC Holdings, Inc. for $73.8 million, marking a strategic expansion in the financial services sector.

Post-Merger Operations and Management

Post-acquisition, ICC Holdings will continue to operate as an independent entity under the Mutual Capital Group umbrella. Key ICCH directors and executive officers, who collectively control 25% of ICCH’s common stock, have expressed their support for the merger. Additionally, Tuscarora Wayne Insurance Company, a subsidiary under Mutual Capital Holdings and controller of 6.4% of ICCH’s common stock, will also vote in favor of the transaction.

Financial and Legal Advisors

MCG has engaged Griffin Financial Group, LLC for financial advisement, with legal counsel from Locke Lord LLP. Conversely, ICCH has enlisted Stonybrook Capital, LLC as its financial advisor and Stevens & Lee, P.C. as legal advisors, ensuring a well-rounded and expertly managed negotiation process.

Mutual Capital Group’s Expansive Portfolio

Mutual Capital Group operates a diversified portfolio including Mutual Capital Holdings, Inc., Mutual Capital Analytics, Inc., and several insurance-related entities such as Tuscarora Wayne Insurance Company and Keystone National Insurance Company.

ICC Holdings’ Diverse Operations

Based in Rock Island, Illinois, ICC Holdings, Inc. is the parent company to a variety of subsidiaries, including Illinois Casualty Company and Beverage Insurance Agency, among others. Post-merger, Arron K. Sutherland, president and CEO of ICC Holdings, will continue leading these operations.

This acquisition is strategically significant for Mutual Capital Group, expanding its footprint in the insurance sector and leveraging ICC Holdings’ established market presence. The premium offered in this transaction highlights the value seen in ICC Holdings’ current operations and future potential.

As this merger progresses towards its expected conclusion, the strategic alignment of Mutual Capital Group’s extensive network with ICC Holdings’ specialized services promises to enhance shareholder value and fortify market positioning in the financial services landscape.