LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM - News) and KMG America Corporation (“KMG”) (NYSE: KMA - News) today jointly announced that the acquisition of KMG by Humana has been completed in accordance with the Agreement and Plan of Merger approved by KMG’s shareholders on November 16, 2007. KMG shareholders will be receiving instructions for surrendering outstanding shares in exchange for $6.20 in cash for each KMG share held. The total transaction price of approximately $187.7 million (including approximately $15 million of debt which was repaid at closing and the assumption of approximately $35 million of debt) was financed through a combination of cash and debt.

KMG offers life and health insurance products and services to approximately 1 million group and individual members nationwide, including stand-alone stop-loss insurance through group employers for approximately 392,000 members and third-party claims administration and medical management services for approximately 126,000 self-insured members. KMG’s revenues for the nine months ended September 30, 2007 approximated $163 million.

The transaction is not expected to impact Humana’s guidance for 2007 diluted earnings per common share (“EPS”) and was already reflected in Humana’s previous guidance for 2008 EPS of $5.30 to $5.50.

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Source: Humana Inc.

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