Fairfax to acquire American Safety Insurance for $306 million

TORONTO, June 3 Mon Jun 3, 2013 9:25am EDT

TORONTO, June 3 (Reuters) - Fairfax Financial Holdings Ltd said on Monday it has agreed to acquire American Safety Insurance Holdings Ltd for roughly $306 million, in a move aimed at expanding its insurance operations in certain specialty lines.

Toronto-based Fairfax said American Safety stockholders will receive $29.25 per share in cash, a premium of 22 percent to the company's closing price on May 31.

The board of directors of American Safety has unanimously approved the deal, which is expected to close in the fourth quarter.