LONDON (Thomson Financial) - Willis Group Holdings, the London-based global
insurance broker, confirmed it is to buy U.S. rival Hilb Rogal & Hobbs Co for
$46 a share, or an enterprise value of around $2.1 billion, half in cash and
half in shares. The deal was reported in the Financial Times.
Willis expects the acquisition to be accretive to cash earnings per share
from the close and to GAAP earnings per share from year two.
Annualized synergies are expected to amount to approximately $140 million by
2012. Over time, Willis plans to repurchase a majority of the shares issued in
connection with the transaction under its previously approved $1 billion buyback
plan.
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