Insurance Broker Hub Intl. Acquired by Funds Manager in Deal Valued at $4.4 Billion

Global insurance broker Hub International Limited (Hub), said it has agreed to be acquired by funds advised by Hellman & Friedman LLC. The transaction values Hub at approximately $4.4 billion.

Under the terms of the agreement, investment funds managed by 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, according to the announcement.

Hub is currently owned by private equity firm Apax Partners, which acquired it in June, 2007 together with Morgan Stanley Principal Investments for more than $40 per share in a deal worth $1.8 billion. As a result of that transaction, Hub was delisted from the New York and Toronto stock exchanges.

“In partnership with the Hub International team led by Chairman and CEO Martin Hughes, Apax Funds has supported the company’s growth into a top-10 global insurance broker over the past six years. We are proud of Hub International’s tremendous growth – achieved both organically and by executing a disciplined M&A program – since our acquisition in 2007, and believe the company has exceptional opportunities before it,” said Mitch Truwit, partner at Apax.

With more than 6,500 employees in the U.S. (including Puerto Rico) and in Canada and Brazil, Hub said it expects to achieve 2013 revenue of approximately $1.2 billion, after the annualized impact of acquisitions.

Martin Hughes, Hub chairman and CEO, said the latest move positions Hub International for “continued growth and success within our industry.”

The Hub-Hellman & Friedman transaction is subject to customary closing conditions and is expected to be completed before the end of 2013. The company’s existing debt arrangements will be replaced at closing with new debt financing that has been committed by BofA Merrill Lynch, Morgan Stanley Senior Funding Inc. and RBC Capital Markets.

Topics Mergers & Acquisitions Agencies