The Caisse de dépôt et placement du Québec will jointly acquire American an insurance brokerage and consulting firm in a transaction that values the company at US$4.3 billion.
Caisse will acquire USI Insurances Services from Onex Corp. in an equal partnership with global investment firm Kohlberg Kravis Roberts & Co. with the support of USI senior management.
USI delivers property and casual insurance, employee benefits and personal risk and retirement products in the United States.
“CDPQ and KKR are co-leading this investment and leveraging their respective expertise in the sector to support USI’s world-class management as it pursues its strategic plan for long-term growth,” said Christian Puscasiu, co-head of private equity direct investments at Caisse.
“USI operates in a resilient sector characterized by stable, long-term returns and serves small and medium-sized businesses, which are the cornerstone of the U.S. economy.”
Caisse and KKR will make the investments through funds from the former’s pool of capital and the latter’s balance sheet. Both companies have co-invested in several ventures over the years and have experience with financial services and insurance-related sectors.
The transaction is scheduled to close by the end of the second quarter of 2017.