Blackstone to sell Alliant to KKR

KKR is buying Alliant Insurance Services from the Blackstone Group. Financial terms weren’t announced. Alliant’s management and employees own about 45% of the company and are rolling over a “substantial portion,” a statement says. Alliant is a specialty insurance brokerage firm. The deal is expected to close in fourth quarter. JP Morgan Chase and Blackstone Advisory Partners acted as financial advisors to Blackstone.

PRESS RELEASE

Leading global investment firm Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”) (NYSE: KKR) today announced an agreement to acquire Alliant Insurance Services, Inc., the nation’s largest specialty insurance brokerage firm, from Blackstone (together with its affiliates, “Blackstone”) (NYSE: BX).Terms of the transaction were not disclosed.
Tom Corbett, Chairman and CEO of Alliant said, “This transaction marks the next phase of Alliant’s growth and offers us an exciting opportunity to continue to build the business and offer best in class products and services to our clients.  We are pleased to be partnering with KKR and appreciate the positive role that private capital can play in helping us manage our business and execute a growth strategy.  This transaction will enable Alliant to remain independent and maintain its market leading position.”
The management team and employees of Alliant own approximately 45% of the company and will roll over a substantial portion of their investment in the company.
Tagar Olson, Member of KKR, said, “Alliant’s leadership team has built a unique insurance distribution franchise that is differentiated in its expertise, product offerings and client relationships.  We are excited to partner with the Alliant team as it builds on the successful track record of product innovation, platform expansion and accretive acquisition activity in the specialty insurance marketplace.”
Chinh Chu, Senior Managing Director of Blackstone, said, “Alliant’s deep entrepreneurial culture combined with best in class specialized products have allowed it to stand out as an industry leader. Blackstone was pleased to have worked with Alliant’s management team over the past five years to help expand the company’s market reach and strengthen its national presence through a series of strategic acquisitions.”

JP Morgan Chase and Blackstone Advisory Partners served as advisers to Blackstone and Alliant on the transaction.  The transaction is expected to close in the fourth quarter, subject to certain conditions.
About Alliant Insurance Services
Headquartered in Newport Beach, Calif., Alliant Insurance Services, Inc. is one of the largest insurance brokerage firms in the United States and has a history dating back to 1925. Alliant provides property and casualty, workers’ compensation, employee benefits, surety, and financial products and services to some 20,000 clients nationwide, including public entities, tribal nations, healthcare, energy, law firms, real estate, construction, and other industry groups. More information is available on the company’s web site at: www.alliantinsurance.com.
About KKR
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $66.3 billion in assets under management as of September 30, 2012. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platform. KKR is publicly traded on the New York Stock Exchange (NYSE: KKR). For additional information, please visit KKR’s website at www.kkr.com.
About Blackstone
Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-oriented funds and closed-end funds. The Blackstone Group also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com.  Follow us on Twitter @Blackstone.

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