Hilb Rogal & Hobbs (HRH) has confirmed that it is to acquire Lloyd's broker Glencairn...
Hilb Rogal & Hobbs (HRH) is to acquire the stock of Glencairn Group.
The agreement, which has been approved by the FSA, will see HRH finance the purchase price through its existing revolving credit facility.
Hilb Rogal & Hobbs is the eighth largest broker in the US.
Glencairn has over 150 employees in London and has offices in South Africa, Russia and Australia. 2006 revenues are expected to be in the region of £20m.
Upon completion of the acquisition, Steve Hearn, Glencairn's current chairman and chief executive, is expected to be appointed chief executive of HRH's existing London operations as well as continue to lead his current staff.
Hearn commented: “By partnering with HRH, Glencairn will have increased access to capital resources and capabilities. We look forward to continuing to serve our clients with the same teams they have worked with for years, and feel that HRH is an extremely good fit, both culturally and strategically.”
HRH chairman and chief executive Martin (Mell) Vaughan III said, “We are pleased to have a company of Glencairn's outstanding reputation joining our organisation, and to further our strategic objectives by expanding our wholesale and reinsurance capabilities. In addition, by uniting
"HRH will triple its size in the UK, combining the forces of some of the most talented insurance professionals in London. Our expanded presence in this marketplace will allow HRH increased access to the Lloyd's market and other critical international underwriting markets, including Bermuda.
"We are looking forward to serving our clients with global insurance needs with these increased capabilities, and to combining our London operations under the strong leadership of Steve Hearn and his management staff. We are excited to welcome Steve and his associates to HRH.”
