Marsh to acquire Honan Insurance Group
Global broking giant Marsh has agreed to acquire Melbourne-headquartered Honan Insurance Group.
The acquisition of 100% of the outstanding share capital of Honan includes the 80% holding of private equity firm TA Associates. Terms of the deal, expected to complete later this year subject to regulatory approvals, have not been disclosed.
Founded in 1964 by Geoffrey Honan, who died last year aged 92, Honan operates across Australia, New Zealand, and Asia with more than 400 employees. It serves more than 30,000 clients from offices in Sydney, Brisbane, Perth, Adelaide, Darwin, Newcastle, Auckland, Singapore, and Kuala Lumpur.
Rumours of a sale had been building over recent months with listed brokers PSC and Steadfast reported to be interested.
As well as corporate risk advisory and employee benefits, Honan specialises in strata and real estate insurance services.
On completion of the deal, Honan CEO Andrew Fluitsma will report to Marsh CEO Pacific Nick Harris.
Mr Harris says the management team and employees of Honan will strengthen Marsh’s corporate offering.
“The addition of Honan’s highly complementary capabilities, particularly in corporate risk and strata insurance, will enable Marsh to deepen the specialist expertise we provide to clients across Australia and New Zealand, and support them in managing the risks they now face,” he said.
Mr Fluitsma says the transaction is good news for Honan’s clients “who will benefit from the combination of our experience with Marsh’s global resources and solutions”.
“With the support of TA over the last three years, Honan has undergone a period of accelerated growth, completing several acquisitions and increasing revenue and profitability,” he said.
“The senior leadership team at Honan are committed to this exciting next phase of growth within Marsh.”