Hellman & Friedman LLC has agreed to buy Hub International in a deal valued at $4.4 billion. The sellers are Apax Partners and Morgan Stanley’s private equity arm. Chicago-based Hub is an insurance brokerage with more than 6,500 employees in the U.S., Canada and Brazil. Hub’s senior management will continue to have a significant equity position. BofA Merrill Lynch, Morgan Stanley Senior Funding, Inc. and RBC Capital Markets are providing debt financing. BofA Merrill Lynch, Morgan Stanley & Co. LLC and Stephens Inc. provided financial advice to Hub and Apax.
CHICAGO – August 5, 2013 – Hub International Limited (Hub), a leading global insurance brokerage, announced today that it has entered into an agreement to be acquired by funds advised by Hellman & Friedman LLC. The transaction values Hub at approximately US$4.4 billion.
Under the terms of the agreement, investment funds managed by Hellman & Friedman will hold a majority interest in the company, while members of Hub’s senior management will continue to have a significant equity position.
With more than 6,500 employees in the US (including Puerto Rico), Canada and Brazil, Hub is expected to achieve 2013 revenue of approximately US$1.2 billion, after the annualized impact of acquisitions.
Martin Hughes, Hub Chairman and CEO, commented, “Partnering with Hellman & Friedman will enable us to build upon our current strategy of enhancing our product and service capabilities and expanding our geographic footprint. We are excited that our new partners share our commitment to investing in our people and are dedicated to working with us to deliver even greater value to our clients. By aligning our company with Hellman & Friedman, we are positioning Hub International for continued growth and success within our industry.”
“We have long admired Hub and are delighted to partner with Marty and the entire Hub team,” said David Tunnell, Managing Director of Hellman & Friedman. “Over 15 years, Hub has established itself as a market-leading insurance broker with a clear focus on customer success and growth. Its growing market footprint and capabilities will allow it to capitalize on significant opportunities going forward. Our firm has a longstanding history of investing in insurance businesses and we look forward to working with the Company to support its next phase of growth.”
Mitch Truwit, Partner at Apax Partners, said, “In partnership with the Hub International team led by Chairman and CEO Martin Hughes, Apax Funds has supported the company’s growth into a top-10 global insurance broker over the past six years. We are proud of Hub International’s tremendous growth – achieved both organically and by executing a disciplined M&A program – since our acquisition in 2007, and believe the company has exceptional opportunities before it.”
The transaction is subject to customary closing conditions and is expected to be completed before the end of 2013. The Company’s existing debt arrangements will be replaced at closing with new debt financing that has been committed by BofA Merrill Lynch, Morgan Stanley Senior Funding, Inc. and RBC Capital Markets.
BofA Merrill Lynch, Morgan Stanley & Co. LLC and Stephens Inc. are providing financial advice to Hub and Apax.
About Hub International Limited
Headquartered in Chicago, IL, Hub International Limited is a leading global insurance brokerage providing property and casualty, life and health, employee benefits, investment and risk management products and services through offices located in the United States (including Puerto Rico), Canada and Brazil. For more information, visit www.hubinternational.com.
About Hellman & Friedman LLC
Hellman & Friedman LLC is a leading private equity investment firm with offices in San Francisco, New York and London. Since its founding in 1984, H&F has raised and, through its affiliated funds, managed over $25 billion of committed capital. The Firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including financial services, insurance, software, business & marketing services, internet & digital media, media, healthcare and energy & industrials. For more information on H&F, visit www.hf.com.
Apax Partners is one of the world’s leading private equity investment groups. It operates globally and has more than 30 years of investing experience. Funds under the advice of Apax Partners total over $40 billion around the world. These funds provide long-term equity financing to build and strengthen world-class companies. Funds advised by Apax Partners invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Healthcare and Financial & Business Services. For further information about Apax, please visit www.apax.com.