(By Balaseshan) ONEX Corp. (TSE: OCX), a private equity company engaged in acquiring and building businesses, said it has agreed to buy insurance broker USI for $2.3 billion from a Goldman Sachs (NYSE: GS) private equity fund.
The equity investment of about $700 million will be made by Onex Partners III, in which Onex is a 25% limited partner; Onex as a co-investor in the transaction; and USI's employees. Upon closing, Onex, Onex Partners III and employees of USI will own 100% of the company.
"USI has established a strong national insurance brokerage with a very impressive management team led by Mike Sicard. The company is well positioned to continue to grow both organically and by building on its track record of successful acquisitions," said Robert Le Blanc, an Onex Managing Director.
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USI is a player in the insurance brokerage market with a diversified mix of property and casualty, employee benefits and retirement consulting. USI is ranked as one of the ten largest insurance brokers in the United States.
Founded in 1994, USI is headquartered in Briarcliff Manor, New York and has more than 3,300 employees in about 100 offices across the United States. The transaction is anticipated to close by the end of 2012 subject to customary conditions and regulatory approvals.
Onex has about $14 billion of assets under management, including $4.8 billion of proprietary capital, in private equity, credit securities and real estate. Onex invests its proprietary capital directly and as a substantial limited partner in its Funds.
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Onex' businesses have assets of $39 billion, generate annual revenues of $34 billion and employ approximately 235,000 people worldwide.
OCX is trading down 0.49% at $40.35 on Monday, while GS trades down 0.81% at $119.33.