Aon completes acquisition of broker NFP
Global insurance and reinsurance brokerage Aon has completed the previously announced acquisition of NFP, a middle-market property and casualty broker, benefits consultant, wealth manager and retirement plan advisor.
This acquisition expands Aon’s presence in the middle-market segment, along with adding capabilities across property and casualty brokerage, benefits consulting, wealth management and retirement plan advisory.
Aon has purchased the P&C broker from funds affiliated with NFP’s main capital sponsor, Madison Dearborn Partners, and funds affiliated with HPS Investment Partners for $13 billion, including $7 billion in cash and assumed liabilities as well as $6 billion in equity in the form of 19 million Aon shares
As an Aon company, NFP will operate as an independent and connected platform delivering Risk Capital and Human Capital capabilities from across Aon and will continue to be led by Doug Hammond, Chief Executive Officer, reporting to Eric Andersen. President, Aon.
Greg Case, CEO, Aon, commented, “It is a historic day for our firm as we welcome NFP to Aon and work together to help clients address increasing volatility across risk and people issues.
“With high-performing teams and leading content and capability – further enabled by our Aon Business Services operating platform – we will create more value for our clients, while also enhancing long-term shareholder value creation for investors. This acquisition is another example of how we are going further, faster with our 3×3 Plan to accelerate our Aon United strategy and further enhance our relevance to clients.”
Andersen further added, “The idea of being ‘independent and connected’ is key to how we will collaborate and create more options for clients across our Risk Capital and Human Capital capabilities. Doug and his team have built an exceptional client-centered business and we are focused on using our Aon Business Services platform to scale delivery of new capabilities to small and middle market clients across Aon and NFP.”
The duo stated that the faster-than-anticipated close date contributes to expected accretion and free cash flow benefit realization a year earlier than modelled at the announcement.
Hammond said, “With Aon’s acquisition of NFP now complete, we are starting an exciting new chapter in our company’s history. We look forward to the positive impact that our complementary expertise and capabilities will have on all stakeholders. Aon’s diverse resources and global reach enhance our ability to serve the dynamic risk, workforce, wealth management and retirement needs of our clients. We remain focused on both advancing a culture colleagues want to be part of and working together to contribute to our collective growth and success.”
UBS Investment Bank served as the exclusive financial advisor to Aon on the transaction, meanwhile, Citi served as a financial advisor advised on transaction financing. Cravath, Swaine & Moore LLP and McDermott Will & Emery LLP acted as external legal counsel.
For NFP, Evercore acted as the lead financial advisor with support from Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., Jefferies LLC and TD Securitie. Skadden, Arps, Slate, Meagher & Flom LLP and Ropes & Gray LLP acted as external legal counsel and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as external legal counsel to NFP’s capital sponsors.
