American International Group acquired HSB Group, Inc. (Hartford Steam Boiler) for approximately $1.2 billion in AIG common stock; $41.00 per HSB share (AIG common stock, or at AIG's option stock and cash), treated as a purchase for accounting purposes, a transaction announced in August 2000, structured as all-stock ($41.00 per share; AIG had the option to pay part in cash).
HSB Group, Inc. (Hartford Steam Boiler) operates in Specialty commercial insurance (equipment breakdown / engineering), is based in Hartford, Connecticut, USA. HSB Group, Inc. (NYSE: HSB), the Hartford, Connecticut parent of The Hartford Steam Boiler Inspection and Insurance Company, agreed to be acquired by AIG for 100 percent of its stock in a transaction valued at about $1.2 billion, or $41.00 per HSB share in AIG common stock (with AIG able to elect to pay part in cash). In connection with the agreement, HSB granted AIG an option to purchase up to 19.9 percent of its common stock. The parties expected to close in late 2000 or early 2001, and the deal was treated as a purchase (not a pooling) for accounting. Hartford Steam Boiler is the leading provider of equipment-breakdown (boiler and machinery) insurance and engineering-based inspection services.
The all-stock combination added Hartford Steam Boiler's specialized equipment-breakdown insurance and engineering-inspection franchise to AIG's commercial-insurance portfolio.
A market-leading, engineering-based specialty franchise in equipment-breakdown insurance and inspection services adjacent to AIG's commercial lines. Integrated into AIG's commercial/specialty insurance operations
Advisory firms were not disclosed for this transaction.