Associated Bank sells its insurance agency

Posted on May 5, 2020 :: Insight on Business, Web Exclusive
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Posted by of Insight Publications

Associated Banc-Corp is selling Associated Benefits & Risk Consulting to USI Insurance Services LLC.

ABRC is a multi-line insurance agency and Midwest-based consulting firm with 400 employees. It provides employee benefits, retirement plans, compliance, business insurance, risk management and individual insurance solutions.

USI is one of the largest insurance brokerage and consulting firms in the world and provides property and casualty, employee benefits, personal risk, program and retirement solutions to large risk-management clients, middle-market companies, smaller firms and individuals. Headquartered in Valhalla, N.Y., USI has 200 offices nationwide.

Under the terms of the sales agreement, the purchase price is $265.755 million in cash subject to adjustment for, among other things, transaction expenses and working capital changes. ABRC’s last 12 months pro forma revenues were approximately $89 million.

“This transaction allows us to monetize our investment in ABRC and further our strategic goals of enhancing shareholder value and being a source of strength for our customers, colleagues and communities,” said Philip B. Flynn, Associated’s president and CEO.

The deal is expected to close late in the second quarter or early in the third quarter.