Hub International Limited, a global insurance brokerage, has entered into an agreement to be acquired by funds advised by Hellman & Friedman for $4.4 billion. Hub International has been a portfolio company of Apax Partners since 2007. The transaction is expected to be completed before the end of 2013.
Under the terms of the agreement, 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.
Hub International is a 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. With more than 6,500 employees, Hub is expected to achieve adjusted 2013 revenue of approximately $1.2 billion. The company is headquartered in Chicago (www.hubinternational.com).
“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,” said Martin Hughes, Hub Chairman and CEO. “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.”
The company’s existing debt arrangements will be replaced at closing with new debt financing that has been committed to by BofA Merrill Lynch, Morgan Stanley Senior Funding, Inc. and RBC Capital Markets.
Hellman & Friedman invests from $200 million to $750 million in companies across a range of industries including energy & industrials, software, business & marketing services, internet & digital media, financial services, insurance, media, and healthcare. Founded in 1984, the firm has raised and managed over $25 billion of committed capital and invested in over 60 companies. The firm is currently investing its sixth fund, with $8.4 billion of capital commitments. Hellman & Friedman is based in San Francisco with additional offices in London and New York (www.hf.com).
Apax Partners invests in the technology & telecom; retail & consumer; media; healthcare; and financial & business services sectors. The firm recently closed on its 8th fund with $7.5 billion of capital commitments. Apax is based in London and New York (www.apax.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-6-13