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Member, Beacon International Group, Ltd.
CHICAGOAon Corp. has reached a definitive agreement to sell Swett & Crawford Group, the world's largest wholesaler, to a group of investors.
Aon did not disclose the terms of the transaction, though it said in a statement that the investor group includes Dallas-based private equity investment firm Hicks, Muse, Tate & Furst Inc.; Banc of America Capital Investors; and Emerald Capital.
In a statement, HMTF said that "a number of key (Swett & Crawford) employees have made a long-term professional commitment to the company, enabling them to also invest in the transaction alongside HMTF and thereby to own a significant stake in the new Swett & Crawford."
Business Insurance estimates that Swett & Crawford generated revenues of $246.1 million in 2004. The group's premium volume for that year was $2.78 billion.
Merrill Lynch acted as financial advisor to Chicago-based Aon, while Credit Suisse First Boston and Deutsche Bank advised HMTF.
Aon in February announced it was exploring alternatives to its ownership of Swett & Crawford.
Earlier this month, Marsh & McLennan Cos. Inc. sold wholesaler Crump Group Inc. to private equity firm J.C. Flowers & Co. L.L.C. Previously, Willis Group Holdings Ltd. had sold Stewart Smith Group to American Wholesale Insurance Group Inc.
Observers have said the moves by the world's largest three brokerages were motivated in part by a desire to eliminate perceived conflicts of interest arising from brokerages owning retail and wholesale operations.