U.S.I. Holdings Corporation announced its intent to acquire Falls Church, Virginia-based Patterson/Smith Associates.
Patterson Smith is expected to contribute approximately $11 million of
revenues to USI on an annual basis. The consummation of the transaction is expected to occur in the first quarter of 2005. Terms of the transaction, which are subject to negotiation and execution of definitive agreements and other customary closing conditions, were not disclosed.
Patterson Smith was founded in 1961 and is one of the largest
independently owned insurance brokerage firms in the Washington, D.C. metropolitan area. The company has a diversified revenue mix with approximately 65 percent of revenues derived from property/casualty and 35 percent from employee benefits. The combination of Patterson Smith with USI’s existing operation will create one of the largest middle market brokers in the Washington, D.C. metropolitan area.
David Eslick, chairman, president and CEO of USI, said, “The
acquisition of Patterson Smith will enhance our current strength in the
Washington, D.C. metropolitan area and furthermore, bring additional benefits expertise to the USI’s Washington, D.C. operation that is currently mostly focused on property/casualty. We are extremely pleased with the professional level of their management and production team, which will provide additional talent to our current operations.”
Frank Patterson, president and CEO of Patterson Smith, added, “For the past 40 plus years Patterson Smith has been dedicated to accurately assessing our clients potential exposure to loss, anticipating their additional needs and providing coverage that not only meets these requirements, but exceeds them. The USI management team is committed to providing this same quality of
service. Aligning with USI would increase our ability to serve our customers through enhanced product and service capabilities.”
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