RICHMOND, Va., Oct. 30, 2019 /PRNewswire/ -- The Hilb Group, LLC
("Hilb"), a leading national insurance broker, announced today that
it has signed a definitive agreement with global investment firm
The Carlyle Group (NASDAQ: CG) for investment funds affiliated
with Carlyle to acquire a majority interest of Hilb. Hilb's
existing management team and employee shareholders are expected to
remain significant shareholders. Hilb is currently a
portfolio company of Abry Partners, a Boston-based private equity firm.
Founded in 2009, Hilb employs more than 900 associates and
operates 91 branch offices serving all 50 states. Abry Partners
invested in Hilb in 2015 and worked closely with management to grow
the business into one of the Top 30 insurance brokers in the U.S.
according to Business Insurance magazine. The firm was
recognized as one of the fastest growing private companies by
Inc. magazine in 2018, and ranked a Top 10 fastest growing
broker in 2017 by Business Insurance magazine and a Top 100
P/C Agency by Insurance Journal magazine in 2019.
Richard Spiro, Chief Executive
Officer at Hilb, said, "This investment by Carlyle is a strong
endorsement of our growth strategy and represents the next exciting
chapter for Hilb. Carlyle's additional capital and resources
will significantly benefit our company and associates as we grow
our business organically and through targeted M&A
opportunities. Working with Abry enabled us to accelerate our
development and we are equally excited to have new partners to fuel
future growth. We have a rich pipeline of partnership opportunities
and look forward to continuing our expansion with Carlyle."
Brent Stone, Partner at Abry,
said, "During the four years of our ownership, we helped build Hilb
into a national insurance brokerage by investing in the company's
operations and strengthening its management team, including
recruiting Ricky as CEO. The company's annual revenues
dramatically increased under our ownership and we successfully
completed more than 60 strategic add-on acquisitions during that
time. We are very pleased with the outcome of this investment
for our investors and also for Hilb's management team and
employees. Hilb is very well positioned for ongoing growth and
performance as a portfolio company of Carlyle and we wish them
success."
John Redett, Managing Director
and Co-Head of Carlyle Global Financial Services, said, "We have
long admired the Hilb franchise and are extremely impressed with
what Ricky Spiro and the Hilb
management team have accomplished during the past several
years. We look forward to our partnership, and to supporting
Hilb in its next chapter of growth and innovation as it expands
into new geographies and product lines to serve the increasingly
complex needs of its clients."
Nathan Ott, Principal at Abry,
commented, "Hilb has made significant progress since our
acquisition and has developed a proven track record of growth
across a variety of geographic regions and product lines. The
company is led by a best-in-class management team and is poised to
achieve its next level of growth."
Equity capital for the investment will come from
Carlyle Partners VII, an $18.5
billion fund that focuses on buyout transactions in the
U.S., and Carlyle Global Financial Services Partners III,
L.P., a dedicated financial services buyout fund.
The transaction is expected to be completed in the fourth
quarter of 2019, subject to customary closing conditions, including
regulatory approvals. Financial details of the transaction were not
disclosed.
J.P. Morgan and Sica | Fletcher served as financial advisors to
Abry and Hilb, and Kirkland & Ellis LLP served as legal
counsel. Simpson Thacher & Bartlett LLP served as legal counsel
and Latham & Watkins LLP provided financing and regulatory
counsel to The Carlyle Group. Funds managed by Ares Capital
Management LLC, Crescent Capital Group, Owl Rock Capital, Antares,
and Barings will provide debt financing for the transaction.
About Abry Partners
Abry is one of the most experienced and successful sector-focused
private equity investment firms in North
America. Since their founding in 1989, the firm has
completed over $82.0 billion of
leveraged transactions and other private equity or preferred equity
placements. Currently, the firm manages over $5.0 billion of capital across their active
funds. For more information on ABRY, please
visit www.Abry.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with
deep industry expertise that deploys private capital across four
business segments: Corporate Private Equity, Real Assets, Global
Credit and Investment Solutions. With $223
billion of assets under management as of June 30, 2019,
Carlyle's purpose is to invest wisely and create value on behalf of
its investors, portfolio companies and the communities in which we
live and invest. The Carlyle Group employs more than 1,775 people
in 33 offices across six continents.
About The Hilb Group
The Hilb Group is a leading middle market insurance agency
headquartered in Richmond, Virginia and is a portfolio
company of Boston-based private equity firm, Abry Partners.
The Hilb Group seeks to grow through targeted acquisitions in the
middle market insurance brokerage space. The company now has 91
offices in 21 states. Please visit our website at
www.hilbgroup.com.
Contacts:
For Abry and Hilb, Chris Tofalli
Chris Tofalli Public Relations, LLC
914-834-4334
chris@tofallipr.com
For Carlyle, Christa Zipf
+1 (212) 813-4578
Christa.Zipf@carlyle.com
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SOURCE The Hilb Group, LLC