Compelo Insurance is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More
Close
Dismiss

Willis Group Holdings and Hilb Rogal & Hobbs agree to combine forces

Willis Group Holdings, an insurance broker, and Hilb Rogal & Hobbs Company, an insurance and risk management intermediaries, have announced that the companies will combine forces in a transaction that will double Willis's North America revenues.

Under the terms of the definitive agreement, Willis will acquire all of the outstanding shares of common stock of Hilb Rogal & Hobbs Company (HRH) for $46 per share, 50% cash and 50% stock in a transaction having an equity value of approximately $1.7 billion and an enterprise value of approximately $2.1 billion.

The transaction is expected to close in the fourth quarter of 2008 and is subject to customary closing conditions, including regulatory and HRH shareholder approval. The total purchase price of $2.1 billion represents a multiple of 2.4 times estimated 2008 HRH revenues and less than 10 times estimated 2008 EBITDA, including the assumption of an estimated $400 million of HRH debt.