Toronto-based firm Onex to acquire USI for $2.3 billion

The private equity firm Onex Corporation announced Monday it has agreed to acquire USI, one of the largest insurance brokers in the United States, for US$2.3 billion.

The equity investment of approximately $700 million will be made by Onex Partners III, in which Onex is a 25% limited partner; Onex as a co-investor in the transaction; and USI’s employees, notes a statement from Onex. Upon closing, Onex, Onex Partners III and USI employees will own 100% of the company.

The transaction is expected to close by the end of 2012 subject to customary conditions and regulatory approvals.

USI, founded in 1994, is the 9th largest insurance broker in the U.S. and the 13th largest in the world. Offering a diversified mix of property and casualty, employee benefits and retirement consulting, it has approximately 100 offices throughout the U.S.

Noting that USI has established a strong national insurance brokerage, “the company is well-positioned to continue to grow both organically and by building on its track record of successful acquisitions,” comments Robert Le Blanc, a managing director for Onex.

“We look forward to our next phase of growth in partnership with Onex,” adds USI’s CEO Mike Sicard.

Onex’s businesses have assets of $39 billion, generate annual revenues of $34 billion and employ about 235,000 people worldwide.