October 27, 2006
Specialty health and life insurance holding company Universal American Financial Corp. announces Special Committee review of management-led buyout bid.
On October 25, specialty health and life insurance holding company American Financial Corp. announced that its Board of Directors has received a proposal from members of management, led by Chairman and CEO Richard A. Barasch, and private equity firms Capital Z Partners, Ltd.; Lee Equity Partners, LLC; Perry Capital, LLC; and Welsh, Carson, Anderson & Stowe X, L.P. to acquire all of Universal American’s publicly held common stock for $18.15 per share in cash. The Board has established a four-member Special Committee, represented by Willkie, to review and evaluate the proposal. The deal values the entire company at $1.06 billion and the stake not held by the buyout group at $552 million. Through its family of companies, Universal American offers a broad array of health insurance and managed care products and services, primarily to the growing senior population. Partners Richard Posen and Michael Schwartz, and associate Adam Shulman are advising the Special Committee in its review of the proposal.