Willis offers €550m for Gras Savoye
Broker Willis has made a firm offer to acquire the remaining 70 percent of French insurance broker Gras Savoye for €550 million.
The offer price includes the repayment of outstanding third party debt, which is estimated to be about €40 million.
Willis has also issued a notice preserving its right under the existing shareholder agreement to acquire the remaining shares in Gras Savoye in June 2016, if the offer falls through. The purchase price would then be determined by a formula under the agreement.
According to the broker, Gras Savoye’s board had received the offer positively and that, if approved, the transaction is expected to close on or around December 31, 2015.
Gras Savoye would become part of the Willis Group, while maintaining its name and brand in key markets, including France. Paris would become one of Willis’ global centres of excellence. Together, the two firms combined would have scale through a presence in 131 countries, of which 84 would be wholly-owned operations, said Willis.
Dominic Casserley, chief executive officer of Willis, said: “Our clients see us as the multinational risk adviser and broker of choice. In this next phase of our longstanding partnership, Willis and Gras Savoye would deepen further our client service offering and strengthen our reach and expertise.
“We would help clients in both fast-growing and developed markets to capture opportunities. This deal would unite two complementary global networks, the analytical expertise of both organisations, and two values-based operating models in order to bring more to our clients.”
Patrick Lucas, chairman of Gras Savoye, said: “The board of Gras Savoye is delighted to receive the offer from Willis Group. We have worked together for forty years, and this offer is the logical next step in that relationship.
“Together we would be stronger and could present a truly impressive worldwide offering to clients, as well as professional development opportunities to our colleagues at Gras Savoye and at Willis. Gras Savoye would be elevated to the position of being one of the leading risk advisory and broking firms in the world.”
