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Hub International acquired by funds advised by Hellman & Friedman

Hub International, an insurance brokerage, has entered into an agreement to be acquired by funds advised by Hellman & Friedman.

 
The transaction values Hub at approximately USD4.4bn.
 
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.
 
With more than 6,500 employees in the US (including Puerto Rico), Canada and Brazil, Hub is expected to achieve 2013 revenue of approximately USD1.2bn, after the annualised impact of acquisitions.
 
Martin Hughes, Hub chairman and chief executive, says: “Partnering with Hellman & Friedman will enable us to build upon our current strategy of enhancing our product and service capabilities and expanding our geographic footprint. We are excited that our new partners share our commitment to investing in our people and are dedicated to working with us to deliver even greater value to our clients. By aligning our company with Hellman & Friedman, we are positioning Hub International for continued growth and success within our industry.”
 
“We have long admired Hub and are delighted to partner with Marty and the entire Hub team," says David Tunnell, managing director of Hellman & Friedman. "Over 15 years, Hub has established itself as a market-leading insurance broker with a clear focus on customer success and growth. Its growing market footprint and capabilities will allow it to capitalise on significant opportunities going forward. Our firm has a longstanding history of investing in insurance businesses and we look forward to working with the company to support its next phase of growth."
 
Mitch Truwit, partner at Apax Partners, says: “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 programme – since our acquisition in 2007, and believe the company has exceptional opportunities before it.”
 
The 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 and RBC Capital Markets.
 
BofA Merrill Lynch, Morgan Stanley and Stephens are providing financial advice to Hub and Apax.

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