Hub International Limited said it plans to acquire BNC Insurance Services Inc., an Arizona-based insurance brokerage firm that does business under the name Milne & BNC Insurance Services. Terms of the deal were not released.
Phoenix-based Milne & BNC, producing approximately $19 million in revenue, has 85 employees in Phoenix, Prescott Valley, Cottonwood and Tucson, Ariz.; Bismarck, Mandan and Linton, N.D.; and Englewood, Colo. The operation will become a new regional platform doing business as Hub International Milne.
The firm was founded in 1990 and purchased in 2002 by BNC National Bank, a subsidiary of BNCCORP Inc. This marks the fourth major purchase by Hub International of a large brokerage operation from a financial institution.
Richard Milne, president of Milne & BNC Insurance, will become president of Hub Milne's Arizona-based operations. The North Dakota offices will be folded into Hub Mountain States, and the Colorado office will be folded into Hub Southwest, Hub said.
"The BNC acquisition presents a tremendous market opportunity to become established in the Phoenix metropolitan area, one of the fastest growing communities in the United States," said Martin P. Hughes, Chicago-based Hub's chairman and chief executive officer.
Mr. Hughes said the deal also "presents a promising opportunity for growth for our Hub Southwest and Hub Mountain States operations through collaboration and an extended reach in the West region."
The deal is subject to BNCCORP shareholder approval, as well as customary closing conditions, Hub said. The firm expects the acquisition to close at the end of the second quarter or the beginning of the third quarter of this year.
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