Acquisitions · Life insurance
Meiji Yasuda buys US insurer StanCorp for about $5 billion
- Buyer
- Meiji Yasuda Life Insurance (Tokyo)
- Target
- StanCorp Financial Group, Portland, Oregon
- Value
- About $5.0B ($115 per share)
- Status
- Agreed on July 23, 2015 (US time); completed on March 7, 2016.
- Date
- 2015-07-23
Meiji Yasuda Life Insurance agreed to buy StanCorp Financial Group, a Portland, Oregon insurer that markets its products as The Standard, for $115 per share in cash, or about $5.0 billion. Meiji Yasuda announced the deal in Japan on July 24, 2015. The purchase closed on March 7, 2016, when StanCorp became a wholly owned subsidiary.
Why it matters
The deal gave Meiji Yasuda an established US group insurance and retirement business. It was one of three large US life and non-life insurance purchases by Japanese insurers in 2015.
What StanCorp does
StanCorp's subsidiaries, marketed as The Standard, sell group and individual disability insurance, group life and accidental death and dismemberment coverage, and group dental and vision insurance. They also offer absence management, retirement plan products and services and individual annuities, and they originate and service fixed-rate commercial mortgage loans.
Closing
The merger was carried out through MYL Investments (Delaware), a wholly owned Meiji Yasuda subsidiary, under an agreement dated July 23, 2015. At the closing on March 7, 2016, each StanCorp share was converted into the right to receive $115 in cash, and the stock was delisted from the New York Stock Exchange. The completion release described Meiji Yasuda as the oldest and third largest life insurer in Japan.
Sources
Kakehashi M&A News home
