Goldman to Buy USI for About $993 Million
Insurance broker USI Holdings said it agreed to be bought by Goldman Sachs' private equity arm for about $992.8 million.
GS Capital Partners agreed to pay $17 a share, representing a 9% premium over the stock's closing price Friday of $15.55. The offer is 21% higher than the stock's average price over the 30 days up to Oct. 24, when the company announced a private equity group indicated its willingness to buy.
USI has about 58.4 million shares outstanding. At $17 a share, that values the company at $992.8 million. USI put the total value of the deal, including debt, at approximately $1.4 billion. USI reported long-term debt of $280.4 million at the end of September.
USI said its board unanimously approved the deal. A special committee had earlier recommended the deal to the board.
The company expects the deal to close in the second quarter, subject to stockholder and regulatory approvals.
Lazard Freres is USI's financial adviser. Goldman Sachs is advising its private equity unit.