Hub International to be acquired by private equity firm

Global insurance brokerage Hub International Limited has agreed to be acquired by a San Francisco private equity firm for $4.4 billion.

Under the terms of the agreement, investment funds managed by Hellman & Friedman will hold a majority interest in the company, while members of Hub’s senior management will continue to have a significant equity position, according to the announcement from Hub.

The Chicago-based brokerage, which has roughly 6,500 employees in the United States, Canada and Brazil, is expected to have 2013 revenue of about $1.2 billion, after the annualized impact of acquisitions, according to Hub’s statement.

“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,” Martin Hughes, Hub’s chairman and CEO commented in a statement.

“We are excited that our new partners share our commitment to investing in our people and are dedicated to working with us to deliver even greater value to our clients,” he added. “By aligning our company with Hellman & Friedman, we are positioning Hub International for continued growth and success within our industry.”

“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,” Mitch Truwit, partner at Apax added.

“We are proud of Hub International’s tremendous growth – achieved both organically and by executing a disciplined M&A program – since our acquisition in 2007, and believe the company has exceptional opportunities before it.”

The transaction is subject to customary closing conditions and is expected to be completed before the end of 2013. The Company’s existing debt arrangements will be replaced at closing with new debt financing that has been committed by BofA Merrill Lynch, Morgan Stanley Senior Funding, Inc. and RBC Capital Markets.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Stephens Inc. are providing financial advice to Hub and Apax.