US giant makes $700m swoop on Australian insurance broker
US insurance broker giant Marsh & McLennan is nearing an agreement to acquire Australia’s Honan Insurance, according to people familiar with the matter.
Marsh and TA Associates, Honan’s private equity owner, are finalising details of a transaction that could value Honan at about $700 million, the people said. A deal could be announced as soon as Monday, they said.
Marsh has emerged as the likeliest purchaser after beating other rivals in the industry and buyout firms, the people said. While a transaction is likely to be agreed imminently, the companies may have to clear regulatory approvals, the people said.
Honan CEO Andrew Fluitsma. Eamon Gallagher
TA Associates has been working with a financial adviser as it weighed a sale of the business amid interest from prospective buyers, Bloomberg News reported in June.
An announcement could still be delayed and talks could fall apart even though discussions are in the final stage, they said. Representatives for Honan, Marsh and TA Associates couldn’t be reached for comment outside business hours in Australia and the US.
Marsh, based in New York and established in 1871, has businesses in 130 countries, making it one of the world’s largest insurance brokers, according to its website. An acquisition of Honan would boost the company’s presence in Australia, where it started operations in 1965. It now has branches in about 29 locations across the country with almost 2000 employees.
Founded in 1964, Honan offers services including designing, pricing and negotiating insurance policies on behalf of mid-market companies across industries including financial institutions, health care and technology, TA’s website shows. It operates in Australia, New Zealand and Southeast Asia.
TA invested
Read more on afr.com
