Aon PLC has agreed to acquire insurance brokerage USI from KKR for $17 billion including debt, expanding its reach among medium-sized businesses. USI, which provides risk management, health insurance, and retirement plan services, reports about $3 billion in annual revenue. The net purchase price is $16.7 billion, reflecting approximately $278 million of certain tax attributes, and represents about 14.5 times synergized trailing twelve-month adjusted EBITDA. Aon plans to fund the transaction with new debt raised across a range of maturities, subject to market conditions. Aon CEO Greg Case said the combination will establish the premier U.S. middle-market platform and position Aon to accelerate organic growth. The deal marks KKR's latest exit, having acquired USI for $4.3 billion in 2017. Shares of Aon were down 7.3% Monday morning.
Aon PLCAon to acquire USI for $17B, funded with new debt, shares down 7.3%
KKR & Co. Inc.KKR exits USI at $17B after acquiring for $4.3B in 2017, realizing significant gain
USI Corp
