Transamerica Purchases Fairmont Financial

Transamerica said it completed buying Fairmont Financial in a stock swap worth about $132 million.

Under terms of the previously announced agreement, owners of the 5.4 million shares in Fairmont, a Burbank-based workers compensation insurance company, will receive 2.99 million shares of Transamerica stock. Based on Transamerica’s current stock price of about $32 a share, the deal has a value of about $96 million.

Transamerica, a San Francisco insurance company, plans to offer 1.16 million more shares to those holding stock options and convertible bonds. That would give the deal a total value of about $132 million.