BB&T Acquires McGriff, Seibels For $354 Million
NU Online News Service, Nov. 11, 3:12 p.m. EST?BB&T Insurance Services brokerage in Raleigh, N.C. said it plans to buy McGriff, Seibels & Williamson of Birmingham, Ala. for $354 million in cash and stock.
The acquisition of the Alabama firm is slated for completion in the first quarter of next year. BB&T said it is currently the eighth biggest U.S. broker and the purchase will make it the sixth largest insurance broker in the nation.
BB&T said if the purchased firm exceeds certain performance targets that there will be an "earnout" payment to McGriff, Seibels & Williamson shareholders of about $102 million over a five year period.
The merger, BB&T said, signals an expansion strategy to make the company a countrywide provider of insurance and risk management.
McGriff, Seibels & Williamson, with 775 employees, will retain its name and management team while operating as a wholly-owned subsidiary of Branch Banking and Trust Company, BB&T said. In addition, Bruce Dunbar, will continue as chief executive officer for McGriff, Seibels & Williamson and lead that operation and the BB&T insurance operations outside of the BB&T footprint.
With a projected $1.8 billion in premiums for this year, privately-held McGriff, Seibels & Williamson is "one of the best managed and most profitable brokers in the industry," according to Henry Williamson, BB&T chief operating officer.
Wade Reece, BB&T Insurance Services president said, "While BB&T has enjoyed a lot of success in the insurance distribution business, there is certainly much we can learn from McGriff, Seibels & Williamson. Clearly their success has come from their client-centered approach to doing business."
BB&T Insurance Services is part of the Winston-Salem, N.C.-based financial holding company, BB&T Corp.
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