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August 12, 2008
The Palisades Group's recent merger with the parent company of The Proformance Insurance Co. will result in as many as 48 layoffs at the company's office in Freehold Township, an official said Monday.
The layoffs, about 18 percent of the Freehold Township office, range from executives to legal secretaries. They will begin Aug. 17 and continue for three months, according to a notice filed with the New Jersey Department of Labor and Workforce Development.
The two companies first announced the merger on March 13 "and as part of the transition we looked at both companies and merging the companies as efficiently as we could," Palisades spokesman John Peppas said.
Berkeley Heights-based Palisades completed the acquisition of Freehold Township-based National Atlantic Holdings Corp. on Aug. 1 for $6.25 a share. There were 11 million shares outstanding in May, which means the deal was valued at $68.75 million.
The acquisition brought together two companies that operate only in New Jersey and sell insurance through independent agents. The combined company will insure 250,000 vehicles and 175,000 households.
Peppas said the acquisition allowed Palisades to get into new insurance lines such as umbrella insurance, which consumers can buy to cover damages beyond their standard insurance.
Palisades will continue to operate out of Proformance's Freehold Township office. But the company decided to lay off workers who were performing duplicate jobs, Peppas said.
James V. Gorman, chairman and chief executive officer of National Atlantic, did not join Palisades, Peppas said.
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