Vanek Promoted to CEO of NLASCO; Acquisition by ARC Closed

Affordable Residential Communities Inc. of Englewood, Colo., announced the completion of its previously announced acquisition of Waco, Texas-based NLASCO Inc., a privately held property and casualty insurance holding company. ARC also reported that Greg Vanek, president and chief operating officer of NLASCO, has been promoted to chief executive officer of NLASCO.

NLASCO specializes in providing fire and homeowners insurance to low value dwellings and manufactured homes primarily in Texas and other areas of the south, southeastern and southwestern United States. Through its two insurance subsidiaries, National Lloyds Insurance Company and American Summit Insurance Company, NLASCO underwrites its insurance policies through approximately 6,600 independent agents in 27 states.

NLASCO will operate as an independent wholly owned subsidiary of ARC. NLASCO’s current management team has been retained and will continue to utilize the operational infrastructure at NLASCO’s existing location in Waco. The business model of NLASCO will not change and the emphasis will remain on providing outstanding service to all the independent agents associated with the companies.

C. Clifton Robinson, NLASCO’s current chairman and chief executive officer, will serve as non-executive chairman of NLASCO’s board of directors. Additionally, NLASCO Vice Chairman Gordon B. Robinson will serve in an advisory role to NLASCO for a period of two years.

Prior to joining NLASCO, Vanek worked in the mobile home manufacturing industry and in the underwriting department of the Farm Bureau Insurance Company. Vanek came to NLASCO in 1986 and was promoted to his current position in 2001.

ARC also reported the results of the $80 million rights offering that ARC commenced on Dec. 22, 2006. In the rights offering, ARC’s stockholders, other than Gerald J. Ford and ARC Diamond LP, an affiliate of Ford, purchased approximately 95 percent of the shares of ARC’s common stock offered to them.

Ford and ARC Diamond, who agreed not to exercise their rights in the rights offering, purchased in a private placement directly from ARC a total of 1,759,400 shares of ARC’s common stock, the full number of shares that they otherwise would have been entitled to subscribe for in the rights offering, at the same price per share as in the rights offering. Hunter’s Glen/Ford Ltd., also an affiliate of Ford, purchased those shares of ARC’s common stock that remained unsubscribed for in the rights offering, other than shares which were covered by rights distributed to Ford and ARC Diamond.

ARC also announced the completion of its previously announced private placement of ARC common stock to Flexpoint Fund,L.P. ARC issued 2,154,763 shares of its common stock to Flexpoint for aggregate proceeds of $20 million.

Affordable Residential Communities Inc. excluding discontinued operations, currently owns and operates approximately 57,264 homesites located in 275 communities in 23 states.

Source: Affordable Residential Communities Inc.

Topics Mergers & Acquisitions