Hub International has announced an agreement with Altas Partners, a Toronto-based investment firm. Under the agreement, funds managed by Altas Partners will make a substantial minority investment in Hub. Funds managed by Hellman & Friedman will remain the majority investor in Hub, and the company’s management team will continue to hold a significant equity position.
The transaction implies a total enterprise value for Hub of more than $10 billion, the company said. For the 12-month period ending September 30, the company expects to report more than $2 billion in total revenue, up from $1.1 billion for the 12-month period that ended prior to H&F’s acquisition of Hub in October 2013.
“This transaction is a strong validation of Hub’s strategy and vision for the future, as well as our long track record of organic and acquisition-driven growth,” said Marc Cohen, president and CEO of Hub International. “All employees, past and current, have contributed to this great moment. Altas Partners’ long-term approach and deep expertise make them a welcome partner as we enthusiastically embark on the significant opportunities ahead.”
“Hub has distinguished itself as the premier mid-market insurance brokerage through its unique regional structure and long, consistent track record of success,” said Scott Werry, managing partner of Altas Partners. “We have long admired Marc, (Hub executive chairman) Marty Hughes and the entire Hub organization. Consistent with our investment philosophy, we look forward to working with the Hub management team and H&F as we support the numerous growth opportunities ahead of the company.”