REUTERS - Hub International Ltd will be sold to funds managed by private equity firm Hellman & Friedman LLC in a deal that values the insurance brokerage at about $4.4 billion, Hub said on Monday.
Buyout firm Apax Partners and Morgan Stanley's(MS.N) private equity arm were exploring the sale of Hub after taking it private six years ago for about $1.8 billion, including $145 million of debt, Reuters reported in April, citing sources. (link.reuters.com/zyq22v)
Hub, which has more than 6,500 employees in the United States, Canada and Brazil, was formed through the merger of 11 privately held Canadian insurance brokerages in 1998. The company has 250 offices throughout the United States.
Hub said in a statement that it expected to post revenue of about $1.2 billion in 2013, after the annualized impact of acquisitions.
Investment funds managed by Hellman & Friedman would hold a majority interest in the Chicago-based company, while members of Hub’s senior management would continue to have a significant equity position, the company said.
It did not specify the size of the stakes to be held.
BofA Merrill Lynch, Morgan Stanley & Co LLC and Stephens Inc are providing financial advice to Hub and Apax. (Reporting by Tanya Agrawal and Anil D‘Silva in Bangalore; Editing by Sriraj Kalluvila and Robin Paxton)