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Global professional services firm Marsh McLennan announced Monday that it has reached an agreement to acquire McGriff Insurance Services, an affiliate of TIH Insurance Holdings, for $7.75 billion. The transaction, guided by Wachtell Lipton and Simpson Thacher, aims to strengthen Marsh McLennan’s insurance division by incorporating McGriff’s expertise across several key insurance lines.

Strategic Acquisition to Expand Insurance Capabilities

Marsh McLennan will pay $7.75 billion in cash, with the purchase funded through a combination of cash reserves and debt financing. The deal is expected to close by the end of 2024, pending regulatory approvals. The acquisition will bolster Marsh McLennan Agency (MMA), particularly in commercial property and casualty, employee benefits, management liability, and personal insurance.

John Doyle, president and CEO of Marsh McLennan, expressed enthusiasm about the acquisition, stating, “McGriff is a business with excellent leadership, outstanding talent, and a record of strong growth. The firm complements Marsh McLennan Agency's capabilities and culture, and I am excited about future opportunities with them as part of our company.”

Marsh McLennan $7.75B McGriff Buy : McGriff’s Strong Industry Presence

Founded in 1886, McGriff is one of the largest insurance brokers in the U.S., specializing in commercial property and casualty insurance, surety, employee benefits, and personal lines for businesses and individuals. The Charlotte, North Carolina-based company generated $1.3 billion in revenue over the 12 months ending June 30, 2024, and has a workforce of over 3,500 employees. McGriff’s CEO Read Davis and his team will join MMA, continuing operations from their current office locations.

Davis shared his optimism about the merger, stating, “Marsh McLennan's global resources and insights will enable us to deliver even greater value to those we serve while creating exciting opportunities for the growth and development of our team.”

Financial Structure and Market Impact

As part of the deal, Marsh McLennan will assume a deferred tax asset valued at approximately $500 million. The acquisition aligns with Marsh McLennan’s broader strategy to grow through acquisitions. Earlier this year, the company purchased The Horton Group, an Illinois-based insurance brokerage.

The acquisition follows other notable insurance industry megadeals, including Aon PLC's $13.4 billion purchase of NFP in December 2023.

Marsh McLennan $7.75B McGriff Buy : Legal Representation

Marsh McLennan is being advised by Wachtell Lipton Rosen & Katz, with corporate partner Daniel A. Neff and antitrust partner Nelson O. Fitts leading the team. Simpson Thacher & Bartlett LLP is representing TIH Insurance Holdings, with M&A partners Elizabeth Cooper and Mark Viera heading the legal team.