USI Insurance Services has announced a substantial new equity investment of over $1 billion from its existing shareholder, KKR.
As part of this agreement, KKR and USI will acquire shares of USI that are currently held by CDPQ and certain other investors. A majority of CDPQ’s holdings, more than 50%, will be purchased in the transaction. Consequently, KKR will become the largest single shareholder of USI upon the completion of the deal.
KKR’s additional investment of more than $1 billion in USI is part of its core investments strategy. The transaction is anticipated to be finalized by the end of 2023, with specific terms of the deal remaining undisclosed.
Back in 2017, KKR and CDPQ partnered to acquire USI in collaboration with the company’s management and employees. Over the past six years, USI has undergone successful growth initiatives and transformative acquisitions, solidifying its position as a leader in insurance brokerage and consulting.
These efforts have expanded USI’s offerings to encompass technology-enabled property and casualty, employee benefits, personal risk, and retirement solutions. During this time, the USI team has more than doubled in size, now comprising over 10,000 team members located in more than 200 offices. Notably, in 2019, USI announced the acquisition of Scheetz, Hogan, Freeman & Phillips (SHFP), a Greenville, South Carolina-based insurance agency.
“When we embarked on our journey with KKR and CDPQ, we shared a vision about the forces impacting our industry and a plan for USI to be a leading innovator in that transformation, combining world-class sponsorship and investment with our team of experts, differentiated solutions and technology,” USI chairman and CEO Michael Sicard said. “The power of this strategic partnership has exceeded our expectations, and we are thrilled to be continuing our journey with the support of our long-term shareholders.”
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