Onex Corporation has completed the sale of USI Insurance Services to KKR and Caisse de dépôt et placement du Québec (CDPQ) at an enterprise value of $4.3 billion.
USI Insurance Services is one of the largest insurance brokerages in the US with approximately 140 offices and more than 4,400 employees offering property and casualty, employee benefits and personal risk insurance products and services. The company was founded in 1994 and is headquartered in Valhalla, NY (www.usi.com).
The Onex Group acquired USI in December 2012 with an equity investment of $610 million, of which Onex’ share was $170 million. With this sale, Onex has now received total proceeds of $2.1 billion, including a prior distribution of $181 million in 2015, resulting in a gross multiple of invested capital of 3.4 times and a 34% gross rate of return. Onex’ portion of the sale proceeds was $563 million, including carried interest of $65 million.
Onex Corporation makes private equity investments through the Onex Partners and the ONCAP families of funds. Onex has more than $25 billion of assets under management and is based in Toronto with additional offices in New York, New Jersey and London (www.onex.com).
KKR (NYSE:KKR) makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm was founded in 1976 and in addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).
CDPQ is a Quebec-based institutional investor that manages funds primarily for public and para-public pension and insurance plans. As at December 31, 2016, it held C$270 billion in net assets. CDPQ invests globally in major financial markets, private equity, infrastructure and real estate (www.cdpq.com).
© 2017 Private Equity Professional | May 17, 2017
