Associated Banc-Corp has agreed to sell Associated Benefits & Risk Consulting (ABRC) to USI Insurance Services for $265.75m in cash.
ABRC is a multi-line insurance agency and Midwest-based consulting firm. The business has a staff headcount of 400.
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It offers business insurance, retirement plans, employee benefits, compliance, risk management and individual insurance solutions.
The firm’s last 12 months pro forma revenue is around $89m.
Associated Banc-Corp plans to support its loan growth and dividend policy using the capital from this transaction.
The deal proceeds will also help in creating added buffer for the company during the uncertain economic period.
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By GlobalDataNew York-based USI delivers property and casualty, employee benefits, personal risk, programme and retirement solutions to large risk management clients, middle market companies, smaller firms and individuals.
The company connects more than 7,500 professionals from around 200 offices to meet the local, national and international needs of clients.
Associated Banc-Corp president and CEO Philip Flynn said: “This transaction allows us to monetise our investment in ABRC and further our strategic goals of enhancing shareholder value and being a source of strength for our customers, colleagues and communities.
“The meaningful valuation difference between regional banks and insurance brokers is not reflected in Associated’s share price, and that difference will also make it difficult for ABRC to grow through acquisitions.”
USI chairman and CEO Michael Sicard said: “We look forward to welcoming the entire team of professionals from ABRC to the USI family.”
The deal is anticipated to close late in the second quarter or early in the third quarter of this year. It awaits regulatory approvals.
