USI Insurance Services, a portfolio company of Toronto-based private equity firm Onex Corp., has agreed to buy 42 insurance brokerage and consulting offices in the U.S. from Wells Fargo Insurance. No financial terms were disclosed. Headquartered in Valhalla, NY, USI is an insurance broker.
TORONTO, ONTARIO–(Marketwired – Jan. 27, 2014) –
Onex Corporation (“Onex”) (TSX:OCX) announced today that its subsidiary, USI Insurance Services (“USI”) has entered into an agreement with Wells Fargo Insurance, part of Wells Fargo & Company (“Wells Fargo”) to acquire 42 of its insurance brokerage and consulting locations across the United States. These offices will further expand USI’s presence as one of the leading middle market insurance brokerage and consulting firms, and will complement USI’s full suite of property-casualty, employee benefits, personal lines, retirement and specialty offerings.
Commenting on the acquisition, Robert Le Blanc, an Onex Senior Managing Director, said, “This acquisition is entirely consistent with our investment thesis for USI, part of which was to work with the company’s outstanding management team to continue to grow USI through accretive acquisitions of select insurance brokerage firms.”
“We are honored to welcome this dedicated group of insurance professionals to USI, and we will work together to share the unique set of combined solutions and resources with our future clients and associates,” said Michael J. Sicard, USI’s chairman, president and chief executive officer. “We look forward to building and expanding in these cities and states with an innovative and comprehensive set of solutions, including middle market property-casualty, employee benefits, personal lines, retirement, programs, and other specialty lines.”
USI has completed fourteen acquisitions since Onex Partners III acquired the business in December 2012.
USI will fund the acquisition with available debt and cash on hand. No additional investment by Onex Partners III will be required.
With offices in Toronto, New York and London, Onex is one of the oldest and most successful private equity firms. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $16 billion of assets under management, including $5 billion of Onex capital, in private equity, credit securities and real estate. Onex invests its capital directly and as the largest limited partner in each of its Funds.
Onex’ businesses have assets of $44 billion, generate annual revenues of $34 billion and employ approximately 229,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company’s security filings can also be accessed at www.sedar.com.
USI is the 3rd largest privately held insurance broker, the 4th largest commercial lines broker in the United States, and the 14th largest insurance brokerage firm in the world. With more than 4,000 dedicated, experienced and innovative professionals, USI is a leader in middle market property-casualty, employee benefits, personal lines, retirement, program and specialty business. USI has been recognized for its innovation by Information Week 500 the last three years and Best’s Review January 2014 Innovation Showcase. USI is headquartered in Valhalla, N.Y. and operates out of more than 100 offices across the United States. Additional information about USI may be found at www.usi.biz.