JLT to sell aerospace division to Gallagher to help close acquisitionPosted On: Mar. 4, 2019 8:09 AM CST
Jardine Lloyd Thompson Group PLC will sell its aerospace practice to Arthur J. Gallagher & Co. to address a potential overlap and smooth the path for JLT’s acquisition by Marsh & McLennan Cos. Inc.
All assets within JLT’s global aerospace retail and wholesale insurance broking division, which includes operations in the United Kingdom, United States, Canada, Australia, New Zealand and 10 other countries spanning Europe, Latin America and Asia, will be sold to Gallagher, the companies said in statements on Monday. The agreement also includes the assets of Hayward Aviation, a U.K. insurance broker that specializes in aviation for high-net worth individuals and smaller airlines. JLT valued the sale at about £190 million ($250.9 million).
“The addition of JLT’s global aerospace broking operations will firmly position Gallagher as a leading broker in the extremely attractive and dynamic aviation and aerospace sector,” J. Patrick Gallagher Jr., chairman, president and CEO, said in the statement. “The business portfolio is a highly complementary geographic fit with Gallagher’s existing footprint and will provide significant growth opportunities for our international businesses.”
About 250 employees from JLT’s global aerospace division will join Gallagher, including about 100 employees within JLT’s London Market operations who will become part of Gallagher’s existing aviation division, which most recently added aviation insurance and reinsurance broker Boston Marks Group to its London-based aviation operations, according to Gallagher’s statement.
The sale was made in connection with the European Commission’s Phase 1 review of Marsh & McLennan’s acquisition of JLT and is subject to the commission’s approval. Marsh & McLennan said there are no discussions with the commission concerning any other aspect of the combined Marsh & McLennan-JLT business, according to a Marsh & McLennan statement.
The closing of Marsh & McLennan’s acquisition of JLT remains on track for the spring of 2019, subject to remaining regulatory and U.K. High Court approvals, according to a Marsh & McLennan statement.