BB&T to acquire CGSC North America in $500m deal
US insurance broker BB&T Corporation is to acquire CGSC North America Holdings from wholesale insurance broker Cooper Gay Swett & Crawford.
Under the terms of the agreement, BB&T will acquire CGSC North America Holdings, which it calls Swett & Crawford, for $500 million in cash.
The company said the transaction will add more than $200 million in annual revenue to BB&T Insurance. BB&T expects to record approximately $500 million of goodwill and intangibles as a result of this acquisition.
The deal is expected to close in the first half of 2016. This transaction excludes Swett & Crawford's non-US business, which accounts for less than five percent of its total revenue.
Currently, BB&T's wholesale insurance operations include property and casualty broker and managing general agent CRC Insurance Services, Crump Life Insurance Services and managing general underwriter AmRisc. Including its retail operations, BB&T Insurance is the fifth largest insurance broker in the US by revenue.
"Swett & Crawford nicely enhances our insurance business and increases and diversifies our overall fee income profile," said Kelly King, BB&T's chairman and chief executive officer.
"With its long history and broad offerings, Swett & Crawford is a great strategic fit for BB&T."
John Howard, chairman and chief executive officer of BB&T Insurance, added: "We have admired the Swett & Crawford business model for many years. This represents a compelling opportunity to further build BB&T Insurance with the addition of a world-class company with a strong and talented team of industry specialists."
The capital used in this transaction represents a reallocation of the remainder of BB&T's 2015 CCAR approved share repurchases.
Deutsche Bank Securities served as financial advisor to BB&T and Willkie Farr & Gallagher served as legal counsel to BB&T in this transaction.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk