Target: Hub International Ltd
Price: $4.4 billion
Sponsor: Hellman & Friedman LLC
Seller: Apax Partners, Morgan Stanley’s private equity arm
Financial Advisers: BofA Merrill Lynch, Morgan Stanley & Co LLC, Stephens Inc
Buyout firm Apax Partners and Morgan Stanley’s private equity arm were exploring the sale of Hub after taking it private six years ago for about $1.8 billion, including $145 million of debt, sister news service Reuters reported in April, citing sources.
Hub, which has more than 6,500 employees in the United States, Canada and Brazil, was formed through the merger of 11 privately held Canadian insurance brokerages in 1998. The company has 250 offices throughout the United States. Hub said in a statement that it expected to post revenue of about $1.2 billion in 2013, after the annualized impact of acquisitions.
Investment funds managed by Hellman & Friedman would hold a majority interest in the Chicago-based company, while members of Hub’s senior management would continue to have a significant equity position, the company said.
It did not specify the size of the stakes to be held.
BofA Merrill Lynch, Morgan Stanley & Co LLC and Stephens Inc are providing financial advice to Hub and Apax.
Tanya Agrawal and Anil D’Silva are correspondents for Reuters in Bangalore.