Chapel Hill Company to Be Acquired in $575M Cash deal

Posted June 11, 2007 12:01 p.m. EDT
Updated June 11, 2007 12:02 p.m. EDT

— James River Group, an insurance holding company that owns and manages specialty property and casualty insurance companies, is going private in a deal worth $575 million.

James River, which went public in 2005, said Monday it had agreed to be acquired by D.E. Shaw Group in an all-cash deal worth $34.50 per share. Shaw Group is based in Bermuda and has $30 billion in investment capital.

James River (NASDAQ: JRVR) shares traded at $35.18 on Monday.

The deal is expected to close in the second half of the year. The James River board has already approved the deal, but the company will continue to “actively solicit” other proposals through Aug. 5, the company said in a statement.

Should a better offer be accepted, Shaw Group would receive a termination fee of $7.2 million.

“We are pleased with the prospect of having such a well capitalized and committed partner as we go forward,” said J. Adam Abram, chief executive officer of James River. “The D. E. Shaw group understands and has embraced our business model and shares our company's approach to the business.”

James River went public in 2005 at $18 per share.