Liberty Mutual Agrees to Purchase State Auto at 200% Premium (1)

Liberty Mutual Holding Co. agreed to buy State Auto Financial Corp. in a transaction that includes purchasing all of the publicly traded shares for $52 apiece, valuing the company at about $2.29 billion.

The purchase price is three times higher than State Auto’s closing share price on Friday. Shares of Columbus, Ohio-based State Auto were down 2.7% this year through Friday, and surged to a record $50.22 at 4:30 p.m. in New York.

“State Auto Group’s capabilities and product expertise are an ideal complement to Liberty Mutual’s domestic personal lines and small commercial business,” Liberty Mutual Chief Executive Officer David ...