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Investment Banking and
Strategic Business Development
Independent Bank Corp. Purchase of Mepco Insurance Premium
Financing
Acquisition Summary
|
Target Information |
| Target: |
Mepco Insurance
Premium Financing |
| City: |
Chicago |
State: IL
|
| Type of Company: |
Insurance
Premium Financing |
| Financial Data As Of: |
03/31/03 |
Assets: $101.2
million |
Finance Receivables: $93.7
million |
| Target’s Business: |
Mepco is a
40-year old Chicago-based company that specializes in financing
insurance premiums for businesses and extended automobile warranties for
consumers. Mepco had gross revenues of $11.6 million and after-tax
earnings of $1.1 million in 2002. For the first three months of 2003,
Mepco had gross revenues of $3.4 million and after tax earnings of $0.45
million. Mepco’s total assets and finance receivables were $101.2
million and $93.7 million, respectively, at March 31, 2003, compared to
$96.1 million and $88.7 million, respectively, at December 31, 2002.
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Acquirer Information |
| Acquirer Name: |
Independent Bank
Corporation |
| City: |
Ionia
|
State: MI |
| Type of Company: |
Bank Holding
Company |
| Financial Data As Of: |
03/31/03 |
Assets: $2.06
billion |
Net Income (LTM): $31.2
million |
| Acquirer’s Business |
Independent Bank
Corporation ("IBC") is a bank holding company with four banking
subsidiaries: Independent Bank, Independent Bank West Michigan,
Independent Bank South Michigan and Independent Bank East Michigan (the
Banks). The Banks' activities cover all phases of commercial banking,
including checking and savings accounts, commercial lending, direct and
indirect consumer financing, mortgage lending and safe deposit box
services, excluding trust services. The Banks also offer title insurance
services through a separate subsidiary. |
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Transaction Information |
| Status: |
Closed |
| Announcement
Date: |
February 2003 |
Accounting:
Merger |
| Completion Date: |
April 15, 2003 |
Consideration:
$10 million + future consideration |
| Comments: |
Under the terms
of the definitive agreement, IBC will pay Mepco shareholders merger
consideration that consists of an initial payment of $10 million and
contingent consideration comprised of a five-year earn out. All merger
consideration will be paid in the form of 50% cash and 50% IBC common
stock. The Company issued 247,672 shares of its common stock and paid
out $5.0 million in cash on April 15, 2003 as the initial consideration.
The Company expects to be able to reduce Mepco’s interest expense by
approximately $1.8 million (pre-tax) annually. |
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