KKR and CDPQ Acquire USI, a Leading Insurance Brokerage and Consulting Firm
March 17 2017 - 7:30AM
Business Wire
KKR and CDPQ, along with USI employees, announced today their
joint acquisition of USI Insurance Services (USI), a leading U.S.
insurance brokerage and consulting firm. As partners with equal
ownership, KKR and CDPQ will acquire USI from Onex Corporation and
its affiliates in a transaction that values USI at US$4.3
billion.
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With more than 4,400 professionals operating out of 140 local
offices throughout the United States, USI delivers property and
casualty, employee benefits, personal risk and retirement
solutions. USI has become an industry leader by leveraging the USI
ONE Advantage® and attracting best-in-class industry talent with a
long history of deep and continuing investment in local
communities.
The investment will primarily be made through KKR and CDPQ’s
core private equity partnership which includes funds from KKR’s
balance sheet and from CDPQ’s pool of capital. The partnership is
designed to pursue attractive investment opportunities in high
quality businesses with a longer duration and a lower risk profile
in order to support strong management teams and facilitate
long-term strategic business building.
KKR and CDPQ have a strong track-record in the financial
services and insurance-related sectors and have been long-standing
partners in multiple investments over the years.
“USI is a fantastic company and is uniquely positioned to help
address the risk management, insurance and employee
benefits-related needs of small and medium-sized business owners.
We look forward to working with CDPQ in helping management achieve
its long-term vision to grow the business through accelerated
investments in USI’s people, technology and solutions,” said Tagar
Olson, Head of KKR’s Financial Services investing practice. “Our
successful experience in the insurance and benefits brokerage
industry, coupled with the impressive track record of Mike Sicard
and the USI management team, give us confidence in our ability to
generate compelling returns while growing the business over the
long term.”
“CDPQ and KKR are co-leading this investment and leveraging
their respective expertise in the sector to support USI’s
world-class management as it pursues its strategic plan for
long-term growth. Our partnership was established to implement both
firms’ patient, disciplined and collaborative investment approach,”
said Christian Puscasiu, Co-Head, Direct Investments, Private
Equity at CDPQ. “USI operates in a resilient sector characterized
by stable, long-term returns and serves small and medium-sized
businesses, which are the cornerstone of the U.S.
economy.”
“We are passionately committed to continuing and accelerating
USI’s growth and investment as a leader in our industry, leveraging
and innovating our unique USI ONE Advantage,” commented Michael J.
Sicard, Chairman & CEO of USI. “We are excited to work with our
new partners at KKR and CDPQ, and want to thank our partners at
Onex for the tremendous support they provided to USI.”
The transaction is anticipated to close by the end of the second
quarter 2017 subject to customary conditions including regulatory
approvals.
ABOUT KKR
KKR is a leading global investment firm that manages investments
across multiple asset classes including private equity, energy,
infrastructure, real estate, credit and hedge funds. KKR aims to
generate attractive investment returns by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation at the asset level. KKR invests
its own capital alongside its partners' capital and brings
opportunities to others through its capital markets business.
References to KKR's investments may include the activities of its
sponsored funds. For additional information about KKR &
Co. L.P. (NYSE:KKR), please visit KKR's website
at www.kkr.com and on Twitter @KKR_Co.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term
institutional investor that manages funds primarily for public and
parapublic pension and insurance plans. As at December
31, 2016, it held $270.7 billion in net assets. As one of
Canada's leading institutional fund managers, CDPQ invests globally
in major financial markets, private equity, infrastructure and real
estate. With over $30 billion of assets under management, CDPQ’s
private equity team has significant expertise both as a direct
investor in companies and as a partner in investment funds. From
LBOs to long-term holdings in businesses of all sectors, CDPQ
distinguishes itself through its flexible and collaborative
approach. For more information, visit cdpq.com, follow us on
Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
ABOUT USI
USI is a leading local and national insurance brokerage and
consulting firm, delivering property and casualty, employee
benefits, personal risk and retirement solutions throughout the
United States. Headquartered in Valhalla, New York, USI has over
$1.0 billion in revenue, employs more than 4,400 professionals and
operates out of 140 local offices serving every state. USI has
become a premier insurance brokerage and consulting firm by
leveraging the USI ONE Advantage®, an interactive platform that
integrates proprietary and innovative client solutions, networked
local resources and enterprise-wide collaboration to deliver
customized results with positive, bottom line impact. USI attracts
best-in-class industry talent with a long history of deep and
continuing investment in our local communities. For more
information, visit usi.com.
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KKRKRISTI HULLER OR CARA KLEIMAN, +1
212-750-8300media@kkr.comorCDPQJEAN-BENOIT HOUDE, +1 514
847-5493Senior Advisor, Media Relationsjbhoude@cdpq.comorUSI
Insurance ServicesEDWARD J. BOWLER,
914-749-8504ed.bowler@usi.comorUSI Insurance ServicesCECILE M.
LOCURTO, 914-747-6331cecile.locurto@usi.com
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