Marsh has agreed to acquire Honan Insurance Group Pty Ltd. as the US insurance broker giant seeks to expand its presence in Australia and New Zealand.
The Marsh & McLennan Cos Inc. unit has signed a deal to buy out Melbourne-based Honan, including an 80% stake held by private equity firm TA Associates, according to a statement, which confirmed an earlier Bloomberg News report. The deal is expected to be completed later this year, subject to regulatory approval. Marsh did not disclose the terms of the deal.
“The addition of Honan’s highly complementary capabilities, particularly in corporate risk and strata insurance, will enable Marsh to deepen the specialist expertise we provide to clients across Australia and New Zealand,” Nick Harris, chief executive officer of Pacific at Marsh, said in the statement.
Bloomberg News first reported in June that TA Associates had been working with a financial adviser as it weighed a sale of the business amid interest from prospective buyers. Marsh emerged as the likeliest purchaser after beating out other rivals in the industry and buyout firms and was finalizing details of a transaction that could value Honan at about A$700 million ($449 million), Bloomberg News reported on Sunday.
Marsh, based in New York and established in 1871, has businesses in 130 countries, making it one of the world’s largest insurance brokers, according to its website. An acquisition of Honan will boost the company’s presence in Australia, where it started operations in 1965. It now has branches in about 29 locations across the country with almost 2,000 employees.
Founded in 1964, Honan offers services including designing, pricing and negotiating insurance policies on behalf of mid-market companies across industries including financial institutions, health care and technology, TA’s website shows. It operates in Australia, New Zealand and Southeast Asia.
TA invested in the company in 2020, without disclosing financial details, according to a statement at the time. As part of the deal, management including then-group CEO Damien Honan agreed to continue to lead the business and be shareholders along with TA. Honan is currently the firm’s executive chairman.
(Updates throughout with official statement.)
Author: Harry Brumpton, Manuel Baigorri and Nabila Ahmed