Pre-Paid Legal Services To Go Private In $650 Mln. Deal With MidOcean

FOR IMMEDIATE RELEASE
Pickerington, Ohio, United States of America (Free-Press-Release.com) January 31, 2011 -- (RTTNews) - Pre-Paid Legal Services Inc. (PPD), Monday said it has agreed to be acquired by New York based private equity firm MidOcean Partners for around $650 million in cash.

The company, which designs, underwrites, and markets legal expense plans in the U.S. and Canada said it signed a definitive merger agreement with MidOcean PPL Holdings Corp. and PPL Acquisition Corp., two newly created entities of MidOcean Partners.

Under the terms of the agreement, MidOcean will acquire all outstanding shares of Pre-Paid for a cash payment of $66.50 per share.

The transaction, which is subject to customary terms and conditions including stockholder and regulatory approvals, is expected to close on or before July 31, 2011. Upon successful completion, Pre-Paid will become a privately held company and its common stock will cease to trade on the NYSE.

MidOcean Partners said that the equity financing necessary for the transaction will be provided by funds affiliated with the firm and the necessary debt financing will be provided by Macquarie Capital, subject to customary closing conditions.

Ada, Oklahoma-based Pre-Paid said the merger agreement was based on the unanimous recommendation by a Special Committee comprised of independent directors of the company's Board and the unanimous consent of its full Board of Directors.

The Special Committee was advised by an independent financial advisor, Berenson & Company, and an independent legal advisor, Mayer Brown LLP. Macquarie Capital acted as financial advisor to MidOcean Partners and Kirkland & Ellis LLP acted as legal advisor.

PPD is currently trading at $65.96, up $5.70 or 9.46%, on a volume of 0.32 million shares on the NYSE.



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