ACCEL International Corp. Announces Agreement to Sell Auto After-Market Product Group.DUBLIN, Ohio--(BUSINESS WIRE)--Aug. 13, 1997--ACCEL International Corp. (NASDAQ/NMS:ACLE ACLE Alarm and Control Enhanced (NEC) ACLE Association for Continuing Legal Education ) today announced it has reached an agreement in principle pursuant to which ACCEL ACCEL Accelerate ACCEL Accelerometer ACCEL Accelerando (Music, Gradually Increasing in Speed) ACCEL American College of Cardiology Extended Learning will sell its auto after-market product group along with the stock of its Acceleration Life Insurance Co. (ALIC ALIC Advanced Learning Infrastructure Consortium ALIC Arid Lands Information Center ALIC Allstate Life Insurance Company ALIC Aircraft Launcher Interface Computer ALIC Asset Limited, Income Constrained ) subsidiary and two other subsidiaries to Frontier Insurance Group Inc. for an undisclosed amount. The closing of the sale is expected to occur during the fourth quarter of 1997 and is subject to the completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. by Frontier, negotiation of a definitive agreement, the approval of the stockholders of ACCEL and the receipt of certain regulatory approvals and satisfaction of certain customary conditions. Thomas H. Friedberg, chairman of the board, president and chief executive officer said that while the decision to sell the auto after-market product group was a particularly difficult one, the board of directors concluded that the sale is in the best interests of ACCEL and its stockholders. "While ACCEL's core business has historically been credit life and health insurance and extended service contracts sold in the automotive after-market, and this business has performed consistently well, the capital resources necessary to achieve continued growth and preserve stockholder value in the present competitive environment are not readily available," he said. "We expect this sale will enable ACCEL to retire all of its indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , provide a significant increase in the capital surplus of Acceleration National Insurance Co. (ANIC ANIC Australian National Insect Collection ANIC American National Insurance Company ANIC Anosmia, Isolated Congenital ANIC ATM Network Interface Card (Cisco) ), its property and casualty insurance subsidiary, which should improve ANIC's competitive position in the market place and provide ACCEL with available funds to consider other opportunities which may arise thereby maximizing the potential for growth for ACCEL and its stockholders." ACCEL International Corp. is a Dublin based holding company that provides specialty insurance products and services through its insurance subsidiaries operating throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . CONTACT: ACCEL International Corp. Nicholas Z. Alexander, 614/764-7180 614/764-7198 fax |
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