By Lisa Kerner
Charlotte, N.C., Feb. 26 - Hub International Ltd. agreed to be acquired by funds advised by private equity firm Apex Partners together with Morgan Stanley Principal Investments through an arrangement agreement and plan of arrangement.
The arrangement agreement calls for Hub shareholders to receive $40.00 per share in cash in a transaction valued at $1.8 billion, according to a company news release.
Hub's board of directors unanimously approved the transaction and recommended that shareholders do the same. The company has until March 19 to solicit proposals for alternative transactions.
A break-up fee of 1.25% of the equity value of the transaction, or about $21 million, is including in the agreement.
The transaction is expected to be completed by the end of the second quarter of 2007.
Hub is a Chicago-based insurance brokerage firm.
| Acquirer: | Apex Partners-advised funds and Morgan Stanley Principal Investments
|
| Target: | Hub International Ltd.
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| Transaction value: | $1.8 billion
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| Payment per share: | $40.00
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| Termination fee: | $21 million
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| Announcement date: | Feb. 26
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | NYSE: HBG; $34.49 on Feb. 23
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