Global investment giant The Carlyle Group has entered into a definitive agreement to acquire a majority interest of national insurance brokerage, The Hilb Group, LLC, from Boston-based private equity firm, Abry Partners.
The transaction is expected to close in the final quarter of 2019 and once completed, Hilb’s existing management team and employee shareholders are expected to remain significant shareholders in the firm.
Equity capital for the investment in Hilb is to come from Carlyle Partners VII, an $18.5 billion fund with a focus on buyout transactions in the U.S. and also Carlyle Global Financial Services Partners III, L.P., which is a dedicated financial services buyout fund.
Richard Spiro, Chief Executive Officer (CEO) at Hilb, commented: “This investment by Carlyle is a strong endorsement of our growth strategy and represents the next exciting chapter for Hilb. Carlyle’s additional capital and resources will significantly benefit our company and associates as we grow our business organically and through targeted M&A opportunities.
“Working with Abry enabled us to accelerate our development and we are equally excited to have new partners to fuel future growth. We have a rich pipeline of partnership opportunities and look forward to continuing our expansion with Carlyle.”
Partner at Abry, Brent Stone added: “During the four years of our ownership, we helped build Hilb into a national insurance brokerage by investing in the company’s operations and strengthening its management team, including recruiting Ricky as CEO. The company’s annual revenues dramatically increased under our ownership and we successfully completed more than 60 strategic add-on acquisitions during that time.
“We are very pleased with the outcome of this investment for our investors and also for Hilb’s management team and employees. Hilb is very well positioned for ongoing growth and performance as a portfolio company of Carlyle and we wish them success.”
Hilb was established in 2009 and employs over 900 associates and operates 91 branches serving all 50 states in the U.S. Abry invested in Hilb in 2015, and worked closely with the firm’s management to help it expand.
“Hilb has made significant progress since our acquisition and has developed a proven track record of growth across a variety of geographic regions and product lines. The company is led by a best-in-class management team and is poised to achieve its next level of growth,” said Nathan Ott, Principal at Abry.
John Redett, Managing Director and Co-Head of Carlyle Global Financial Services, commented: “We have long admired the Hilb franchise and are extremely impressed with what Ricky Spiro and the Hilb management team have accomplished during the past several years.
“We look forward to our partnership, and to supporting Hilb in its next chapter of growth and innovation as it expands into new geographies and product lines to serve the increasingly complex needs of its clients.”
Terms of the transaction were not disclosed, and, the deal remains subject to customary closing conditions, including regulatory approvals.
