NU Online News Service, Dec. 15, 1:28 p.m. EST
Aon Corp. said Aon Risk Services plans to acquire FCC Global Insurance Services, the captive brokerage subsidiary of Madrid-based Fomento De Construcciones Y Contratas, S.A. (FCC).
Financial terms were not released. Chicago-based Aon said the deal is expected to close by the end of the year.
As a result of the deal, Aon Risk Services would become the exclusive global insurance broker for FCC for a term of 10 years.
FCC, according to Aon, is the second largest construction conglomerate in Spain and the 7th largest in Europe, specializing in infrastructure, environmental and related public services including renewable energy and water management services
It operates in 54 countries with more than 94,000 colleagues worldwide. According to the company's Web site, 43 percent of its revenues come from outside of Spain (primarily Europe and the United States). It reported more than EUR14 billion ($20.4 billion) in revenue in 2008.
In a statement, Steve McGill, chairman and chief executive officer of Aon Risk Services said the acquisition strengthens the firm's position in both construction and public services sectors in Europe.
Baldomero Falcones, chairman and CEO of FCC said because of his company's expansion over the past five years half of its revenues come from overseas.
"Increasing premiums, risk complexity and difficulty to locally provide adequate service helped us to decide to become partners with a leading specialist such as Aon," said Mr. Falcones. "FCC is very satisfied with this agreement and we think it is with no doubt the best option for a multinational organization like ours."
The acquisition is the second announced this month by Aon. Earlier, it announced plans to acquire Jericho, N.Y.--based surety and construction broker Allied North America. That deal is also expected to close before the end of the year.
