Lockton Acquires Alexander Forbes International Risk Services, Says Goldsmith Agio

Goldsmith Agio Helms says that its client Lockton, Inc. has reached an agreement to purchase Alexander Forbes International Risk Services, the international brokerage operation of Alexander Forbes Limited (JSE ALEXFBS), the world's ninth largest insurance broker. The $170 million (GBP

By None

Goldsmith Agio Helms says that its client Lockton, Inc. has reached an agreement to purchase Alexander Forbes International Risk Services, the international brokerage operation of Alexander Forbes Limited (JSE:ALEXFBS), the world’s ninth largest insurance broker. The $170 million (GBP 90.2 million) transaction will make Lockton the largest independent, privately owned global insurance broker.

The combined business will have more than $600 million in revenues and 3,700 professionals with locations in Europe, North America, Latin America and Asia. Alexander Forbes International Risk Services’ operation, in combination with its position in the European broker partnership EOS RISQ, gives Lockton the ability to serve clients from 142 local offices in 43 countries.

The acquisition, which is subject to regulatory approvals, is expected to be completed by the end of October 2006. Following completion, the business will operate under the Lockton name and remain based in London. The purchase includes Alexander Forbes’ insurance brokerage operations in corporate risk, professional indemnity, property, construction, aviation, marine, energy and specialist business such as political risk and contingency.

Lockton Companies had 2005-06 revenues of $409 million (GBP 216 million) and 2,100 people. The Alexander Forbes businesses to be acquired had 2005-06 revenues of $202 million (GBP 107 million) with a staff of 1,600 people.

«