North Carolina-based BB&T Insurance Services has completed its acquisition of McGriff, Seibels & Williams Inc. of Birmingham, Ala., creating the sixth largest insurance broker in the nation.
The transaction was valued at $300 million in stock (based on an average closing price of $36.47 during a five-day pricing period prior to Sunday) plus $50 million in cash.
The transaction also allows for a total “earnout” payment to McGriff, Seibels & Williams’ shareholders of approximately $102 million in cash over a five-year period if McGriff, Seibels & Williams exceeds certain performance targets.
The merger – BB&T’s largest insurance acquisition ever – will vastly enhance BB&T Insurance Service’s large account capability and provide a platform to increase BB&T’s national insurance presence, according to BB&T Insurance Services President Wade Reece.
With more than 775 employees, McGriff, Seibels & Williams will operate as a wholly-owned subsidiary of Branch Banking and Trust Company. It will retain its name and management team.
With roots dating back to 1886, McGriff, Seibels & Williams was the largest privately held commercial insurance broker headquartered in the Southeast and the second largest in the United States. The company’s national client base is served by offices in Atlanta, Birmingham, Dallas and Houston. Its risk management specialty areas include energy and marine, financial services, commercial, construction, surety, employee benefits, healthcare and public entity. McGriff, Seibels & Williams specializes in large commercial and energy accounts, and insures numerous Fortune 500 companies. While BB&T Insurance Services also has large accounts, its specialty over the years has been service to mid-size businesses, small businesses and individual clients.
Raleigh-based BB&T Insurance Services, a wholly owned subsidiary of Branch Banking and Trust Company, operates 72 agencies in North Carolina, Virginia, Georgia, South Carolina, Maryland, West Virginia, Tennessee, Florida, Kentucky and Alabama. CRC Insurance Services operates 21 wholesale insurance brokerage locations across the United States.
Topics Mergers & Acquisitions Alabama
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