Aon Acquires USI Insurance From KKR for $17 Billion
Article excerpt
KKR & Co. is set to reap a $3.3 billion windfall from its deal to sell USI Insurance Services to Aon Plc for $17 billion, a significant exit for a unit that’s invested its balance sheet in long-term private equity bets. The transaction will generate about $2 billion of adjusted net income for the private equity giant, according to a statement. KKR holds USI, the 10th-largest US insurance brokerage, in its Strategic Holdings unit, a “mini Berkshire” created in 2023 for long-term dividend-paying assets. USI is the latest exit for New York-based KKR, which last month reported a record quarterly profit fueled by $1.29 billion of asset sales, including Kokusai Electric Corp., which builds semiconductor manufacturing equipment, and HD Hyundai Marine Solution, an engineering-services company. Related: Aon Acquires USI Insurance From KKR in $17 Billion Deal Targeting Middle Market After years of dealmaking doldrums, the recent boom in mergers and acquisitions is helping buyout shops sell more of their private equity bets and return cash to shareholders. Read More: Carlyle Notches Highest Earnings Since 2022 on More PE Exits Separately on Monday, Apollo Global Management Inc. reached a $4.1 billion cash-and-debt deal to sell Kelvion just eight months after assuming control of the German cooling-equipment maker. The USI transaction will help expand Aon’s middle-market business. “We...
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USI Chairman and Chief Executive Officer Mike Sicard will serve as president of Aon and global CEO of middle market, reporting to Aon CEO Greg Case.
