Hub International Limited announced on Aug. 5 that it has entered into an agreement to be acquired by funds advised by Hellman & Friedman LLC, a U.S.-based private equity investment firm. The transaction values Hub at approximately US$4.4 billion.
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. The transaction is expected to be completed before the end of 2013.
Chicago-based Hub has more than 6,500 employees in the US, Canada and Brazil and is expected to achieve 2013 revenue of approximately US$1.2 billion, after the annualized impact of acquisitions, stated the company in a news release.
“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” said Martin Hughes, Hub Chairman and CEO in the news release. “By aligning our company with Hellman & Friedman, we are positioning Hub International for continued growth and success within our industry.”
In an interview with The Insurance and Investment Journal, Hughes said he foresees no changes to Hub’s Canadian operations as a result of this deal. “The strategy and business plan remains the same and the senior management team will stay intact...It’s pretty much business as usual.”