Hellman & Friedman to buy insurance brokerage Hub International for $4.4 bn

Private equity firm Hellman & Friedman yesterday agreed to buy Canada's largest insurance brokerage Hub International Inc (HUB) from Apax Partners, for $4.4 billion.

Under the terms of the deal, investment funds managed by Hellman & Friedman will hold a majority stake in the company, while members of HUB's senior management will continue to have a significant equity position. 

A consortium led by London-based Apax Partners had acquired HUB in 2007 for around $1.8 billion, including debt of $145 million.

Based in Chicago, HUB is a leading global insurance brokerage providing property and casualty, life and health, employee benefits, investment and risk management products and services.

With more than 6,500 employees in the US, Canada and Brazil, Hub is expected to achieve 2013 revenue of approximately $1.2 billion.

Martin Hughes, HUB chairman and CEO, said, "Partnering with Hellman & Friedman will enable us to build upon our current strategy of enhancing our product and service capabilities and expanding our geographic footprint. By aligning our company with Hellman & Friedman, we are positioning HUB International for continued growth and success within our industry."

"We have long admired HUB and are delighted to partner with Marty and the entire HUB team", said David Tunnell, managing director of Hellman & Friedman. "Over 15 years, HUB has established itself as a market-leading insurance broker with a clear focus on customer success and growth.  Its growing market footprint and capabilities will allow it to capitalize on significant opportunities going forward."

Mitch Truwit, partner at Apax Partners said, "In partnership with the HUB International team led by chairman and CEO Martin Hughes, Apax Funds has supported the company's growth into a top-10 global insurance broker over the past six years."