USI Holdings Corporation reported it reached an agreement in principle to acquire Dallas, Texas-headquartered Summit Global Partners (SGP). The transaction, the terms of which were not disclosed, is expected to close in the fourth quarter of 2004.
Established in 1996, SGP is the 14th largest privately held insurance brokerage firm in the United States, according to the announcement. SGP specializes in risk management and employee benefits for middle market companies throughout the United States. It has offices in Texas, Florida, Illinois, California, Tennessee, New Mexico, Michigan and Oklahoma. SGP is expected to contribute approximately $68 million of revenues to USI on an annual basis.
This is the fourth transaction announced by USI this year. The three deals that closed were Dodge Warren & Peters in May, Bertholon-Rowland in April and Future Planning Associates in July. USI operates out of 69 offices in 19 states and is headquartered in Briarcliff Manor, N.Y.
Commenting on the transaction, David L. Eslick, USI’s chairman, president and CEO, said, “With over 90 percent of SGP’s revenues within USI’s current geographic footprint, this acquisition will strengthen our presence in these states and enhance our current ability to serve our clients nationally. With this acquisition, we will also strengthen our management team with the addition of SGP’s senior management including Jeff Pan, Jeff Haynes, Jack Wagner and their team of talented professionals. USI and SGP are aligned in our focus around sales success, operating efficiencies and exceeding our client’s expectations.”
Joseph R. Wiedemann, chairman of Summit Global Partners, said, “Our accomplished insurance professionals have succeeded in helping our clients meet today’s challenges in managing risks, securing needed coverages and providing health insurance and other employee benefits. By using technology to link support and resources, our local area sales and service offices have been able to offer innovative solutions to our clients without adding unnecessary costs. By joining USI, our clients will benefit from its strategic relationships with financially secure, service-oriented insurance companies thereby increasing our ability to offer the highest quality products and services at competitive prices. The USI management team has a well-deserved reputation for commitment to its clients, associates, carrier partners and communities, and we are pleased to be joining such an outstanding group of professionals.”
Topics Mergers & Acquisitions
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