Hub International Limited (TSE: HBG- news) has signed a letter of intent to acquire J.P. Flanagan Corporation, an insurance agency that offers insurance brokerage services from its principal office in Chicago, Illinois, and from its satellite offices in Baltimore, Cleveland, Denver and New York. J.P. Flanagan Corporation had annual commission revenue of approximately US$7 million in 2000. Hub International will issue common shares in consideration of the purchase price, subject to regulatory approval.
Hub International Limited is an international insurance brokerage that provides a broad range of property, casualty, life and health, employee benefits, investment and risk management products through offices located in Canada and the United States. The acquisition of J.P. Flanagan Corporation, added to Hub International's current holdings in Chicago and the Boston metropolitan area, and the previously announced acquisition of Kaye Group Inc. (anticipated to be completed in the second quarter of 2001), with offices in New York, Connecticut, Rhode Island, and California, continues Hub International's expansion into the United States.
It is anticipated that the transaction will be completed on or about May 31, 2001 and that J.P. Flanagan Corporation will merge with Hub International's existing Chicago-based subsidiary, Mack and Parker, Inc., to further develop, market and deliver insurance products and services to meet the evolving needs of their customers.
Marty Hughes, Chairman and Chief Executive Officer of Hub, commented, ``The proposed acquisition of J.P. Flanagan Corporation represents an opportunity to continue our growth strategy in the mid-western U.S. and to gain entry into the Baltimore, Cleveland and Denver markets''. Edward Mack, President of Mack and Parker, added ``The working relationship that we envision between J.P. Flanagan Corporation and Mack and Parker will be a great synergistic fit and will enhance our ability to offer more products and services to our clients.''
Joseph P. Flanagan, founder and President of J.P. Flanagan Corporation, said, ``This transaction represents an attractive opportunity for our staff to access the global resources that Hub International offers. In addition, I believe the depth and experience we will be able to offer through the combination of our agencies will make the new Mack and Parker a powerful force in the mid-western insurance market.''
Subsequent to completion of the transaction, Mr. Flanagan will be appointed to Hub International's Executive Committee and will join Mack and Parker, Inc. in the role of Executive Vice-President.
Completion of this transaction is subject to the receipt of satisfactory applicable regulatory approvals, compliance with applicable legal and regulatory requirements, and standard closing conditions.