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Morneau Shepell Inc. has closed the previously announced acquisition of Mercer’s stand-alone, large market health and defined benefit pension plan administration business in the U.S.

“We are pleased to welcome the very talented employees joining us with this acquisition and our new clients that we look forward to supporting and bringing exceptional service to their employees,” said Stephen Liptrap, president and chief executive officer at Morneau Shepell, in a press release. “This acquisition is in line with our strategic plan of which U.S. expansion is a critical component.”

Read: Morneau Shepell to acquire some of Mercer’s U.S. health, DB plan administration business

Of the total purchase price of about US$57 million, about US$40 million was paid in cash at closing. The balance will be paid over the next year, subject to certain post-closing adjustments. Morneau Shepell anticipates the acquisition will represent about 12 per cent of its annualized revenue.

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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