North Dakota’s BNCCORP Inc. To Acquire Ariz. Agency

BNCCORP Inc. of Bismarck, N.D., announced plans for its insurance subsidiary to acquire Milne & Company Insurance, Inc., d/b/a Milne Scali & Company, one of the largest independent insurance agencies in Phoenix.

BNCCORP, a $585 million-asset regional bank holding company that operates in the North Dakota, Minnesota and Arizona markets, said the purchase will expand the company’s diverse portfolio of financial products, which include insurance, as well as investment, trust and employee benefit services.

Milne Scali generated approximately $10 million in gross commission revenue in 2001. Established in 1990, Milne Scali has approximately 85 employees and three offices in Phoenix, Tempe and the Verde Valley area. It is a full service agency with a strong concentration in business insurance, risk management and employee benefit programs, as well as personal life, health, disability and automobile coverage.

The purchase price paid at closing will consist of $15.5 million in cash, plus newly issued shares of BNCCORP common stock valued at $2.5 million. Additional consideration of up to $8.5 million will be payable over a maximum of five years, subject to Milne Scali’s attainment of certain financial performance targets.

BNCCORP expects the acquisition to be accretive to its earnings during 2002. Completion of the purchase is expected by the end of April 2002. A fairness opinion on the transaction was provided to BNCCORP by the firm of Keefe, Bruyette & Woods Inc.

Milne Scali & Company will continue to operate under its current name, under the management of founders Richard W. Milne, Jr. and Terrence M. Scali and their existing staff. Mr. Milne and Mr. Scali will assume responsibility for overseeing all of BNCCORPs insurance operations.

Topics Mergers & Acquisitions Arizona