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

Morneau Shepell Ltd. is acquiring Mercer’s stand-alone, large market health and defined benefit pension plan administration business for U.S. employer clients.

Mercer will continue to provide these services when they’re bundled with its consulting and brokerage services. It will also continue to provide large market health and benefits administration services for global employer clients with employees in the U.S.

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“This planned acquisition is in line with our strategy to grow our business profitably in the U.S. market and further solidify Morneau Shepell as a leading provider of health and DB plan administration across the United States,” said Stephen Liptrap, president and chief executive officer at Morneau Shepell, in a press release. 

“We expect the transition to Morneau Shepell to be seamless,” said Louis Gagnon, Mercer’s president for the U.S. and Canada. “We will work collaboratively with Morneau Shepell to ensure the ongoing delivery of quality service to our clients and their employees.”

With a purchase price of about US$57 million, the acquisition is expected to close in the third quarter of 2019.

Read: Mercer to acquire Pavilion’s investment consulting business