Onex Corp. (ONEX.TO) and its affiliates said Friday that they agreed to sell USI Insurance Services to an affiliate of KKR & Co. L.P. (KKR) and CDPQ for an enterprise value of US$4.3 billion.
The transaction is expected to close during the second quarter of 2017 subject to customary closing conditions including regulatory approval.
In December 2012, the Onex Group made a US$610 million equity investment in USI, of which Onex' share was $170 million.
Upon completion of the transaction, the Onex Group will have received proceeds of about US$2.1 billion, including a prior distribution of US$181 million in 2015.
Onex noted that its portion of the sale proceeds will be about US$563 million, including carried interest of $65 million.
Separately, KKR and CDPQ, along with USI employees, confirmed their joint acquisition of USI Insurance Services, a leading U.S. insurance brokerage and consulting firm. As partners with equal ownership, KKR and CDPQ will acquire USI from Onex Corporation and its affiliates in a transaction that values USI at US$4.3 billion.
KKR noted that the investment will primarily be made through KKR and CDPQ's core private equity partnership which includes funds from KKR's balance sheet and from CDPQ's pool of capital.
Caisse de dépôt et placement du Québec or CDPQ is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans.
by RTT Staff Writer
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