Marsh McLennan to buy McGriff Insurance from TIH for $7.75 billion

Marsh McLennan says it has an agreement to acquire McGriff Insurance Services for $7.75 billion, financed through cash and debt financing.

US broker McGriff, a private equity-backed subsidiary of TIH (formerly Truist Insurance Holdings), had revenue of $1.3 billion for the twelve months ended June 30. a deferred tax asset valued at approximately $500 million.

The deal adds to Marsh McLennan’s position as the largest U.S. broker, with revenue of $22.7 billion in 2023, according to AM Best.

After the closing, McGriff’s team of approximately 3,500 employees, as well as CEO Read Davis, will join the Marsh McLennan agency and operate from the existing location. The transaction is expected to close by the end of the year, pending regulatory approvals.

Founded in 1886, Charlotte, North Carolina-based McGriff specializes in commercial property/data, surety, employee benefits and personal lines insurance solutions for businesses and individuals in the US.

In May, Truist Financial Corporation completed the sale of its remaining shares in TIH, the fifth largest US insurance brokerage, to an investor group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice.

Along with the sale, TIH announced the formation of a board of directors that included as chairman Dan Glaser, former CEO of Marsh McLennan and operating partner at CD&R. Richard R. Whitt, former co-CEO of Markel Group, Julio Portalatin, former CEO of Mercer, and Ross Buchmueller, former CEO of PURE Insurance, are independent directors.

TOPICS
Mergers and acquisitions