Based in Virginia, Hilb is engaged in making targeted acquisitions in the middle market insurance brokerage space
The Carlyle Group has agreed to acquire a majority stake in US-based middle market insurance broker The Hilb Group for an undisclosed price.
Hilb is a property and casualty insurance and employee benefits broker that predominantly caters to small to medium-sized businesses across the US East Coast.
The company is engaged in making targeted acquisitions in the middle market insurance brokerage space. Since its inception, the company has acquired various insurance agencies.
Hilb has been a portfolio company of Boston-based private equity firm Abry Partners since 2015.
Established nearly 10 years ago, the insurance broker has more than 900 associates. Headquartered in Virginia, the company operates 91 branch offices and serves all the 50 states in the US.
Hilb CEO’s comments on Carlyle’s investment
Hilb CEO Richard Spiro said: “This investment by Carlyle is a strong endorsement of our growth strategy and represents the next exciting chapter for Hilb. Carlyle’s additional capital and resources will significantly benefit our company and associates as we grow our business organically and through targeted M&A opportunities.
“Working with Abry enabled us to accelerate our development and we are equally excited to have new partners to fuel future growth. We have a rich pipeline of partnership opportunities and look forward to continuing our expansion with Carlyle.”
Hilb’s existing management team and employee shareholders are likely to continue as significant shareholders.
Carlyle Global Financial Services managing director and co-head John Redett said: “We have long admired the Hilb franchise and are extremely impressed with what Ricky Spiro and the Hilb management team have accomplished during the past several years.
“We look forward to our partnership, and to supporting Hilb in its next chapter of growth and innovation as it expands into new geographies and product lines to serve the increasingly complex needs of its clients.”
The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to be closed in the fourth quarter of 2019.
Earlier this year, Carlyle acquired a 9% stake in Indian life insurance company SBI Life Insurance from BNP Paribas for an undisclosed price.