Pre-Paid Legal To Merge With MidOcean PPL And PPL Acquisition Corp
Monday, January 31, 2022 2:37 PM

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Oklahoma-based Pre-Paid Legal Services Inc. (NYSE: PPD) announced that it has entered a merger agreement with privately held MidOcean PPL Holdings Corp. and PPL Acquisition Corp. Both MidOcean and PPL Acquisition are newly formed companies, formed by MidOcean Partners, a leading private equity firm, based in New York.

According to the terms of the agreement MidOcean will acquire all of the outstanding shares of Pre-Paid Legal at $66.50 per share, or a total value of approximately $650 million, in an all cash transaction. The transaction is subject to meeting certain terms and conditions, including approval from shareholders and regulators. The companies involved in the transaction, expects the deal to close on or before July 31, 2011.

Harland C. Stonecipher, Founder and Chairman of Pre-Paid Legal Services Inc., said "We are excited to have MidOcean involved in our efforts to increase the awareness of our consumer and small business services. Our entire team is excited about the future prospects of our company and continues to believe, as does MidOcean, that our products offer tremendous value."

On the other hand, Frank Schiff, Managing Director at MidOcean Partners said, "We were drawn to Pre-Paid because of the Company's strong and unique value proposition to its members, associates and provider network. We look forward to combining our strong operating resources with Pre-Paid's strong management team to drive growth and create long-term value."

About Pre-Paid Legal Services Inc.:

Pre-Paid Legal Services, Inc. designs, underwrites and markets legal expense plans. The Company's life events legal plans (referred to as Memberships) provide for a range of legal services. As of December 31, 2009, the Company had 1,547,585 Memberships in force with members in all 50 states, the District of Columbia and the Canadian provinces of Ontario, British Columbia, Alberta and Manitoba. Approximately 90% of such Memberships were in 29 states and provinces.

In the last five years, Pre-Paid Legal Services revenues have increased to $458 million in FY 2009, from $423 million reported in FY 2005. The company also reported an increase in its earnings per share. The company reported an EPS of $5.04 per share in FY 2009, compared to $2.31 in FY 2005.

MidOcean Partners:

MidOcean partners is a private investment firm specializes in middle market investments in the US and Europe. MidOcean targets control investments with minimum equity contribution of $25 million. The company primarily invests in four sectors: Business and Financial Services, Consumer and Leisure, Media and Communications, and Niche Industrials.

I think the merger is going to be more beneficial to MidOcean Partners, as the experience and the products offered by Pre-Paid Legal, will help the newly formed companies of MidOcean to reach out and expand its area of operations.



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