Richmond, Va.-based insurance broker Hilb, Rogal & Hobbs Company said it has signed an agreement to acquire the stock of London-headquartered Glencairn Group Limited, an independent Lloyd's insurance and reinsurance broker group.
HRH said the deal will consist of a combination of cash and deferred cash consideration and will be financed through HRH's existing revolving credit facility. The firm said it expects to complete the transaction on Jan. 2.
Glencairn, organized in 1991, has more than 150 employees in its London headquarters and three offices in South Africa, Russia and Australia.
The firm provides products and services largely in the property-casualty, reinsurance, financial, professional, accident and health, and specialty areas, including political risks and cargo, through both wholesale and retail operations. HRH said Glencairn's annualized 2006 revenues are expected to be approximately $39 million.
Upon the completion of this acquisition, Steve Hearn, Glencairn's current chairman and chief executive officer, will be appointed chief executive officer of HRH's existing London operations and continue to lead his current staff.
"By partnering with HRH, Glencairn will have increased access to capital resources and capabilities," Mr. Hearn said in a statement. "We look forward to continuing to serve our clients with the same teams they have worked with for years, and feel that HRH is an extremely good fit, both culturally and strategically."
"We are pleased to have a company of Glencairn's outstanding reputation joining our organization, and to further our strategic objectives by expanding our wholesale and reinsurance capabilities," said Martin L. "Mell" Vaughan III, HRH's chairman and CEO.
According to Mr. Vaughan, by uniting Glencairn with existing HRH London operations, HRH will triple its size in the United Kingdom. This expanded presence in the marketplace "will allow HRH increased access to the Lloyd's of London market and other critical international underwriting markets, including Bermuda," he said.
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