Marsh & McLennan To Sell Kroll for $1.13 Billion
Bermuda based Marsh & McLennan Companies will be selling its risk consulting subsidiary Kroll Inc to Altegrity Inc for $1.13 billion, in an all-cash transaction. The transaction, which is expected to close by late September, is subject to regulatory approvals and other customary closing conditions.
MMC President and CEO Brian Duperreault said: “Over the past six years, Kroll has been a valued member of the MMC family; however, we have determined our long-term strategy is to focus on the Risk and Insurance Services and Consulting businesses. Altegrity, with its complementary practice areas and expertise, will be a superb partner with Kroll to help drive the continued success of Kroll’s businesses and people.”
Altegrity is owned by Providence Equity Partners, the leading global private equity firm specializing in equity investments in media, entertainment, communications and information companies. Altegrity CEO Mike Cherkasky, who also served as President and CEO of Kroll from 2001 to 2004, said: “Our clients look to Altegrity for information and insight to make smarter decisions. The combination of Kroll and Altegrity broadens our capabilities with the addition of a portfolio of industry-leading services to help clients identify and manage risk. Altegrity and Kroll will leverage their combined resources to develop new and innovative solutions for government and commercial clients across a global platform. Both Altegrity and Providence look forward to working with Kroll CEO Ben Allen and the entire Kroll team to deliver the highest quality service offering in the industry and to grow the combined business.”
“This transaction represents exciting new opportunities for Kroll,” said Ben Allen, CEO of Kroll. “Over the past several years, we have taken significant steps to improve profitability and enhance collaboration across our business units. Kroll is now poised to continue its historical track record of growth, which will be accelerated by the combination with Providence and Altegrity.”
Following the completion of the transaction, Altegrity companies will have approximately 11,000 employees across 30 countries providing information and insight to business leaders making decisions about employment, litigation, investment, security, risk, and regulatory compliance matters.
Julie Richardson, a Managing Director at Providence and an Altegrity director, commented: “Since our investment in 2007, Providence has worked closely with Altegrity to build a global leader in risk assessment and mitigation through improved operations, broadening the service offerings, and strengthening the management team. This acquisition is the capstone to that effort, bringing together Altegrity and Kroll’s complementary world-class services and clearly enhancing Altegrity’s ability to meet client needs in today’s rapidly changing global environment. We look forward to welcoming the Kroll team to Altegrity and to continuing to add value to the business over the long-term.”
Goldman Sachs & Co. and Apollo Investment Corp are providing debt financing for the transaction. MMC was advised by Perella Weinberg Partners and Wachtell, Lipton, Rosen & Katz. Debevoise & Plimpton LLP served as legal counsel to Altegrity and Providence.
