Marsh & McLennan To Buy JLT For $5.7 Billion

September 18, 2018 | 2 Comments

Marsh & McLennan announced that it has reached an agreement to acquire Jardine Lloyd Thompson Group [JLT] for $5.7 billion.

“The transaction has been approved by the Board of Directors of each of MMC and JLT. Under the terms of the transaction, holders of JLT’s common shares will receive cash consideration of £19.15 pounds per share,” the company said.

“Total cash consideration equates to $5.6 billion U.S. dollars in fully diluted equity value, or an estimated enterprise value of $6.4 billion. The transaction will be funded by a combination of cash on hand and proceeds from debt financing.”

Dan Glaser, President and Chief Executive Officer of MMC, said, “The acquisition of Jardine Lloyd Thompson creates a compelling value proposition for our clients, our colleagues and our shareholders. The complementary fit between our companies creates a platform to deliver exceptional service to clients and opportunities for our colleagues.

“On a personal level, I have come to know, and respect, Dominic Burke and his management team from my time both at MMC and as an underwriter. I am confident that with the addition of the talented colleagues of JLT, Marsh & McLennan will be an even stronger and more dynamic company.”

Following completion of the transaction, Mr. Burke, Group Chief Executive of JLT, will join MMC as Vice Chairman and serve as a member of MMC’s Executive Committee.

Mr. Burke said “I am enormously proud of what JLT has achieved, founded on our people, our culture and our unwavering commitment to our clients. MMC is, and always has been, one of our most respected competitors and I believe that, combined, we will create a group that will truly stand as a beacon for our industry.”

MMC noted, “Under the terms of the transaction, MMC will acquire all issued, and to be issued, share capital of JLT for consideration of £19.15 pounds per share in cash. On the basis of the closing price of JLT shares on September 17, 2018 of £14.32 this represents a 33.7% premium.”

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Comments (2)

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  1. red rose says:

    another merger, another round of cuts? where is the fintech promised (la la) land?

  2. Cairncross Friedman says:

    First – there was OUT SOURCING
    Then there was TERM LIMITS (Ouch) “Ya got to go”…
    Then there was the Financial Crash of 2008
    Now its CONSOLIDATION

    This all means less people working in Bermuda…..
    Unfortunately this is a sign of the times in which excess capital in the market drives consolidation. This is not something Bermuda can do anything about other than constraining the costs of doing business and ensuring that we are business-friendly to sector that provides such a material contribution to our economy.

    FALLOUT
    Less kids in schools, less people in supermarkets, shops, drycleaners, less people playing golf, less people buying cars, less jobs for BERMUDIANS – SNOWBALL !!

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