Hilb Rogal & Hobbs has signed a definitive agreement to acquire the stock of Glencairn Group Limited, an independent Lloyd’s insurance and reinsurance broker group headquartered in London.
HRH said the purchase price, which was not disclosed, “will consist of all cash and deferred cash consideration, and will be financed through HRH’s existing revolving credit facility.” It expects to complete the transaction on January 2, 2007.
“With annualized 2006 revenues expected to be approximately $39 million (£20 million), Glencairn’s history dates back to 1991 and it has since grown to include a total of over 150 employees in its London headquarters and three offices in South Africa, Russia and Australia,” said the announcement. “With its global client base, the organization provides a broad spectrum of products and services largely in the property, casualty, reinsurance, financial, professional, accident & health, and specialty areas, including political risks and cargo, through both wholesale and retail operations.”
HRH also noted that when the acquisition is completed “Steve Hearn, Glencairn’s current Chairman and Chief Executive Officer, will be appointed CEO of HRH’s existing London operations as well as continue to lead his current staff.”
Hearn commented: “By partnering with HRH, Glencairn will have increased access to capital resources and capabilities. We look forward to continuing to serve our clients with the same teams they have worked with for years, and feel that HRH is an extremely good fit, both culturally and strategically.”
HRH Chairman and CEO Martin L. (Mell) Vaughan, III, noted: “We are pleased to have a company of Glencairn’s outstanding reputation joining our organization, and to further our strategic objectives by expanding our wholesale and reinsurance capabilities. In addition, by uniting Glencairn with our existing London operations, HRH will triple its size in the United Kingdom, combining the forces of some of the most talented insurance professionals in London. Our expanded presence in this marketplace will allow HRH increased access to the Lloyd’s of London market and other critical international underwriting markets, including Bermuda. We are looking forward to serving our clients with global insurance needs with these increased capabilities, and to incorporating the strong leadership of Steve Hearn and his management staff into our existing London operations. We are excited to welcome Steve and his associates to HRH.”
Source: Hilb Rogal & Hobbs
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