Liberty Mutual Group (“Liberty Mutual”) and Safeco Corporation (“Safeco”) (NYSE: SAF) have announced that they have entered into a definitive agreement pursuant to which Liberty Mutual will acquire all outstanding shares of common stock of Safeco for $68.25 per share in cash. 

The proposed transaction, which is valued at approximately $6.2 billion, has been approved by the Boards of Directors of both companies. It is subject to approval by Safeco’s shareholders as well as the customary regulatory approvals and conditions. The transaction is expected to close by the end of the third quarter of 2008. The transaction is not subject to financing contingencies.

Following the transaction, Safeco will become part of Liberty Mutual Group’s Agency Markets business unit.  Liberty Mutual Agency Markets had revenues of $5.6 billion in 2007.  Combined, the organization will have about 15,000 independent agencies.

Liberty Mutual Group to Acquire Safeco Corporation (Liberty Mutual 4/23/08)
 
Liberty Mutual Agrees to Buy Safeco for $6.2 Billion (Associated Press 4/23/08)

April 29, 2008