Marsh & McLennan To Acquire Jardine Lloyd Thompson Group Plc
September 18, 2018
Marsh & McLennan Companies Inc. (MMC) announced that it will acquire Jardine Lloyd Thompson Group plc (JLT).
Both the MMC and JLT boards of directors have approved the transaction. Under the terms of the transaction, holders of JLT's common shares will receive cash consideration of £19.15 per share. Total cash consideration equates to $5.6 billion in fully diluted equity value or an estimated enterprise value of $6.4 billion. The transaction will be funded by a combination of cash on hand and proceeds from debt financing.
"The acquisition of Jardine Lloyd Thompson creates a compelling value proposition for our clients, our colleagues, and our shareholders. The complementary fit between our companies creates a platform to deliver exceptional service to clients and opportunities for our colleagues. On a personal level, I have come to know and respect Dominic Burke and his management team from my time both at MMC and as an underwriter. I am confident that with the addition of the talented colleagues of JLT, Marsh & McLennan will be an even stronger and more dynamic company," said Dan Glaser, president and CEO of MMC.
Following completion of the transaction, Mr. Burke, group chief executive of JLT, will join MMC as vice-chairman and serve as a member of MMC's executive committee.
Mr. Burke said, "I am enormously proud of what JLT has achieved, founded on our people, our culture, and our unwavering commitment to our clients. MMC is, and always has been, one of our most respected competitors, and I believe that, combined, we will create a group that will truly stand as a beacon for our industry."
JLT was created in 1997 when Jardine Insurance Brokers plc, which was formed almost 50 years ago, merged with Lloyd Thompson Group plc. The firm now operates in 40 countries with particular strength in the United Kingdom and Australia as well as in key emerging markets across Asia and Latin America.
Since the first of the year, other MMC acquisition announcements have included the following.
- Houston, Texas-based Wortham Insurance, an independent insurance brokerage with particular expertise in energy, power, construction, and retail sectors, among other areas
- St. Paul, Minnesota-based Klein Agency Inc., a surety and property-casualty agency specializing in the construction industry
- Rockville, Maryland-based Insurance Associates, an independent insurance agency specializing in the construction industry
- Raleigh, North Carolina-based Highsmith Insurance, an independent insurance brokerage firm offering a wide range of insurance and bond products
September 18, 2018