Toronto-based Onex Corp. acquires insurance broker USI

Deal is valued at US $2.3 billion

Toronto-based Onex Corporation has agreed to acquire USI, a New York state-based insurance broker, for $2.3 billion.

The transaction, which is expected to close by the end of 2012, is subject to customary conditions and regulatory approvals.

USI deals in property and casualty insurance, employee benefits and retirement consulting.

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Founded in 1994, the firm is headquartered in Briarcliff Manor, New York and has more than 3,300 employees in approximately 100 offices across the US. It is ranked as one of the ten largest insurance brokers in the US.

“USI has established a strong national insurance brokerage with a very impressive management team led by Mike Sicard,” said Robert Le Blanc, an Onex managing director, in a press release. “The company is well positioned to continue to grow both organically and by building on its track record of successful acquisitions.”

The USI deal includes an equity investment of approximately $700 million by Onex Partners III, in which Onex is a 25% limited partner; Onex as a co-investor in the transaction; and USI’s employees.

When the deal closes, USI will be 100% owned by Onex, Onex Partners III and employees of USI.

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Transcontinental Media G.P.