American Financial Group, Inc. (NYSE:AFG) entered into a definitive agreement to acquire Crop Risk Services, Inc. from American International Group, Inc. (NYSE:AIG) for $240 million on May 2, 2023. AFG will pay AIG approximately $240 million (which includes an estimated $30 million in net tangible assets) in cash at closing. The consideration shall be paid in cash and is subject to certain closing adjustments.

AFG expects to use cash on hand to fund the acquisition. As part of the AFG organization, CRS will continue to do business in all 37 states in which it currently operates. The deal is subject to obtaining required regulatory approvals and the satisfaction of other customary closing conditions.

The deal is expected to close during the third quarter of 2023. Todd E. Freed and Matthew H. Nemeroff of Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel for AFG. Evercore Group L.L.C. and Sidley Austin LLP acted as financial advisor and legal counsel, respectively, for AIG.