Northbridge Financial Corporation
TSX : NB

Northbridge Financial Corporation

February 26, 2007 09:02 ET

Hub International Agrees to be Acquired

TORONTO, ONTARIO--(CCNMatthews - Feb. 26, 2007) -

(Note: Except where specified otherwise, all dollar amounts in this press release are expressed in U.S. dollars)

Northbridge Financial Corporation (TSX:NB) announced today that one of its longstanding portfolio investments, Hub International Limited (TSX:HBG)(NYSE:HBG), has entered into an agreement pursuant to which Hub shares would be acquired for $40.00 per share in cash by funds advised by Apax Partners together with Morgan Stanley Principal Investments. Pursuant to a voting agreement entered into in connection with the transaction, it was agreed that the 4.8 million Hub shares (approximately 12.3% of Hub's outstanding shares) held by Northbridge would be voted in favour of the proposed acquisition.

The $40.00 per share price represents a premium of 28% to Hub's 90-trading day average closing stock price on the NYSE. The transaction values Hub at approximately $1.8 billion, which includes $145 million of debt. Upon completion, Northbridge is expected to realize an estimated pre-tax gain of approximately Cdn$110 million.

"The Northbridge companies, and in particular our Lombard subsidiary, have had strong relationships with Hub and its various brokers across Canada, dating back long before the establishment of Hub itself," said Northbridge President and Chief Executive Officer, Mark Ram. "We've enjoyed many successes together over the years, working hand in hand through the countless challenges of the insurance cycle, and we look forward to continuing to build on our long-term relationship into the future."

The transaction is subject to Hub shareholder approval, Canadian court approval of the Plan of Arrangement, and other regulatory approvals including merger notification filings in the United States and Canada, as well as customary closing conditions. The transaction is expected to be completed toward the end of the second quarter of 2007.

Northbridge is the leading commercial property and casualty insurance group in Canada, providing property and casualty insurance products through its subsidiaries primarily in the Canadian market as well as in selected U.S. and international markets. Northbridge common shares are listed under the symbol NB on the Toronto Stock Exchange. Visit Northbridge's website at www.norfin.com for more information.

This press release is not and shall not be deemed to be a solicitation of proxies.

Contact Information

  • Northbridge Financial Corporation
    John Varnell
    Chief Financial Officer
    (416) 350-4300
    Website: www.norfin.com