Jul. 16--Guaranty Insurance Services Inc., an Austin-based Temple-Inland Inc. company, announced it acquired Hilliard Box Insurance in Tyler, for an undisclosed amount.

Officials said the acquisition, which became effective July 1, gives Guaranty its first Tyler presence. They said HBI's 30 employees and annual revenues of $4.5 million will be significant to Guaranty.

"We have wanted to be in this area of the state for a long time and I don't think we could have found a better partner than Hilliard Box," said Hal Shults, Guaranty Insurance Services chief executive officer. "With our growing bank operations in Tyler, the timing is perfect."

Guaranty Insurance Services Inc. is a member of the Guaranty Financial Services family of companies, which includes Guaranty Bank. With revenues in excess of $60 million, it is the 34th largest insurance agency in the United States.

It includes offices in Texas' major metropolitan areas, and offices in California's Los Angeles and Central Valley regions. Its core business includes retail property and casualty insurance, risk management and life and health insurance.

Shares of parent company Temple Inland Inc. were up $1.19, at $64.44, on the NYSE Wednesday.





Mike Hilliard, partner in HBI with Dennis Box, said customers will benefit from the acquisition. Customers will see the same employees, and HBI will keep its name.

Hilliard said he and Box will continue to manage and service the agency, at 4802 Kinsey Drive.

The acquisition gives Hilliard and Box the opportunity to "take care of our perpetuation" and continue to operate the business, Hilliard said. He said it allowed them to tell the employees "that this business continues on after Hilliard and Box."

Hilliard started Hilliard Insurance Agency in Tyler in 1977. Box, of Houston, acquired the Dotson-Brown Agency in 1980 and formed Box Insurance. The agencies merged in 1985.

"We are excited to be able to offer our current and future customers the expanded services and markets that Guaranty will make available to them," Hilliard said. "We are also very impressed with the reputation and commitment that Guaranty brings to the table. In so many ways, we feel that HBI is a perfect fit with Guaranty."

Box said, "This opportunity was too great to forego, and we're looking forward to keeping our identity, but with the added visibility and services Guaranty can offer."

This acquisition continues Guaranty Insurance's growth trend of recent years, Guaranty officials said.



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