US-based independent insurance intermediary Brown & Brown has signed an agreement to purchase Beecher Carlson Holdings from Austin Ventures, FSPM and a group of individual employee and non-employee equityholders.
The total net consideration is $336.5m, which includes $360m in cash with adjustments for working capital and the value of net tax operating loss carryforwards.
Expected to close in July, the cash acquisition transaction is subject to customary closing conditions, including regulatory approval.
Following the completion of the deal, Beecher Carlson current president Steve Denton will replace Dan Donovan as CEO, while Denton has also been named as regional vice president of Brown & Brown and Donovan as executive chairman of Beecher Carlson.
Denton and Donovan will both be actively involved in the daily operations of Beecher Carlson and will also join Brown & Brown’s Leadership Council.
Beecher’s account division will remain operating under its current leadership based in Atlanta, Georgia, whereas middle-market retail offices in Oregon, Arizona and Mississippi will become part of the existing Brown & Brown Retail Division.
The OnPoint programs will become a part of Brown & Brown’s National Programs Division.
As an insurance and risk management broker with operations that include retail brokerage, program management and captive management, Beecher Carlson through its subsidiaries, had total annual net revenues of $105.6m for 2012.
Brown & Brown, through its subsidiaries, offers a broad range of insurance and reinsurance products and a variety of risk management, third-party administration, and other services to business, public entity, individual, trade and professional association clients nationwide.