Nearly three months after announcing it was exploring the possibility of going private, USI Holdings Corp. said it was being acquired by GS Capital Partners for about $1.4 billion.
The Briarcliff Manor, N.Y.-based insurance broker said today it has entered into a definitive agreement with GS Capital, a private equity affiliate of Goldman, Sachs & Co.
USI stockholders will receive $17 in cash for each share of USI common stock.
The firm, which operates out of 68 offices in 19 states, said GS Capital would repay the brokerage's existing debt obligations. USI has approximately 3,000 employees.
“After careful analysis, the special committee and board have endorsed this transaction as being in the best interest of our stockholders,” said David Eslick, USI's chairman and chief executive officer, in a statement.
Mr. Eslick continued, “Our new partner is a world-leading private equity firm that believes in our commitment to investing in our people and is committed to working with us to deliver the most value for our clients and customers.”
“Goldman Sachs has a long and successful record of investing in the financial services industry,” said Henry Cornell, a managing director at GS Capital. “We look forward to investing in the continued growth of USI in this next chapter.”
On Friday, USI's stock closed at $15.55 a share.
USI said the transaction is expected to close in the second quarter of this year.
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