Convicted Post Falls insurance chairman John J. Hemmingson has agreed to sell his stake in Crop Growers Corp. for $11.5 million.
The former chief executive of the multiperil insurance company will sell 1.15 million shares to Great American Insurance for $10 each, a premium above Tuesday’s Wall Street close of $8.875.
Gary Black, former executive vice president of Overland Park, Kan.-based Crop Growers, also agreed to sell his 681,744 shares to Great American.
The combined sale will give Great American control of 22.9 percent of Crop Growers, making it the largest shareholder.
Cincinnati-based Great American is directed by financier Carl Lindner, who also controls Circle K, Chiquita Brands and Spelling Entertainment Group.
Hemmingson, who was found innocent earlier this month on charges of making illegal campaign contributions, will be sentenced next week in federal court in New Orleans on three counts of laundering $20,000 to gain favors from former Secretary of Agriculture Mike Espy.