Publish Date : 28-May-2014
Willis Group Holdings plc, the global risk adviser, insurance and reinsurance broker, announced today that it will acquire a controlling stake of approximately 75% in Max Matthiessen, a leading employee benefits adviser in Sweden, for $205 million.
The move underlines Willis' commitment to grow its global Human Capital and Benefits practice in the medium term, and reflects its strategy of driving growth through the acquisition of focused, sophisticated businesses with strong franchises and distinctive skills.
The transaction, which is subject to regulatory approval, complements and strengthens Willis' existing operations in Sweden. The increased revenue will make the combined business the biggest risk adviser and broker in the Nordic region and the largest international adviser in Sweden.
Max Matthiessen is one of Sweden's leading independent advisers in retirement savings, health plans and personal insurance. The Company, with around 420 employees in 23 locations across Sweden, generated in 2013 net revenues of 805 million Swedish Kronor, or approximately $122 million. In 2013, the Company's adjusted EBITDA was 180 million Swedish Kronor, or approximately $27.2 million, and net income to common shareholders was 115 million Swedish Kronor, or approximately $17.4 million.
Willis Sweden and Max Matthiessen have enjoyed a strategic partnership since 2009. Max Matthiessen will continue to benefit from Willis' global reach and experience, while Willis will continue to draw on Max Matthiessen's deep product expertise in employee benefits within and beyond Sweden. The Max Matthiessen brand and culture will be retained and will run alongside Willis Sweden.
Max Matthiessen employees currently own 50% of the Company, while the remaining 50% is held by Altor Fund III. Under the terms of the agreement, Willis will invest 1.357 billion Swedish Kronor – or $205 million – to acquire approximately 75% of the Company, with employees retaining a stake of approximately 25%.
Dominic Casserley, CEO of the Willis Group, said: "Willis is committed to growing in areas of opportunity for market leadership and where we can develop specialised capabilities locally and globally. Max Matthiessen fits that model perfectly. It sustains our investment in the Human Capital and Benefits space, where we are creating leading specialised capabilities. We are confident that the combination of Willis and Max Matthiessen can fuel growth in both Sweden and beyond."
Casserley continued: "Max Matthiessen is a well-run business with a long history and an impressive list of loyal clients. We will be retaining the brand, the skills and the culture, and I look forward to welcoming more than 400 new colleagues into the Willis Group."
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