Jardine Lloyd Thompson is selling its US retail operations to Alliant Insurance Services for $100m (£53.2m).
The sale includes JLT's employee benefits and property and casualty businesses.
Dominic Burke, JLT's chief executive, said: "The sale of the retail part of our US based operations is an important step forward in implementing the results of the operational review that we initiated earlier this year. The disposal is consistent with JLT's strategy of concentrating on areas of proven business strength."
Tom Corbett, Alliant's chief executive, commented: “The JLT US retail operations are quite specialised and truly complement our existing business. This acquisition increases not only our geographic span but more importantly, enhances our position as the premier specialty broker in the US.”
The sale includes $5m (£2.7m) of deferred consideration payable by instalments at the end of 2008 and 2009, subject to profitability. The net consideration on completion after transaction costs, including retention bonuses, is approximately US$85m (£45.2m), payable in cash. The proceeds will be used to further enhance the JLT's financial position including debt reduction. The loss on sale before tax will be approximately £16.5m, subject to completion adjustments. This loss includes the write off of goodwill and transaction costs and will be treated as an exceptional item.
