Onex buys USI Insurance from Goldman fund for $2.3B

TORONTO-BASED ONEX CORP. has agreed to buy USI Insurance Services LLC from Goldman Sachs Group Inc.
Posted 11/26/12

TORONTO - Onex Corp., Canada’s largest publicly traded buyout firm, agreed to buy USI Insurance Services LLC from a fund run by Goldman Sachs Group Inc. in a transaction valued at $2.3 billion.

The deal includes a $700 million equity investment by Onex Partners III fund, the Toronto-based company said Monday in a statement. Employees of the Briarcliff Manor, N.Y.-based insurance broker will remain “significant” investors in USI, which has about 100 offices in the U.S.

Private-equity firms are buying insurance-services companies for their steady cash flow and low capital needs. KKR & Co. agreed on Nov. 23 to purchase brokerage Alliant Insurance Services Inc. from Blackstone Group LP for an undisclosed amount. Last month, a group led by CVC Capital Partners Ltd. said it would acquire insurance-claim adjuster Cunningham Lindsey Group Ltd. in a deal valuing the company at as much as $1 billion including debt.

USI “is well positioned to continue to grow both organically and by building on its track record of successful acquisitions,” Robert Le Blanc, a managing director at Onex, said today in the statement. USI, which has 3,300 employees, is the ninth-largest insurance broker in the U.S., according to its website.

The buyout unit of New York-based Goldman Sachs acquired USI in 2007 in a deal valued at $1.4 billion.

Morgan Stanley advised Onex, and Kaye Scholer LLP provided legal advice. GS Capital Partners received financial advice from RBC Capital Markets LLC, and Weil Gotshal & Manges LLP acted as legal counsel. The companies expect the deal to close by the end of the year.

PBN Hosted

Join PBN and two panels of successful female executives, business owners and entrepreneurs as we delve into what women should do to advance their careers, and become leaders in the corporate world and their own enterprises.
  • Book of Lists Party
    Save the date - January 15, 2015 for PBN's Book of Lists Party at the Providence ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News