Marsh & McLennan Inc. (MMC) has been preparing for a major acquisition and admiring its competitor Jardine Lloyd Thompson (JLT) for years. So right after the CEOs of the two firms met on Sept. 7 and he sensed an opening, MMC CEO Dan Glaser acted quickly and boldly.
In a deal that was hammered out in about 11 days, Glaser and JLT Group CEO Dominic Burke agreed MMC would buy JLT for about 4.3 billion pounds ($5.6 billion).
Du The JLT crashed into each of our boxes, di Glaser added, citing the philosophy of company acquisitions with quality capabilities, strong organic growth, customer commitment, diversification, cost and income synergies, and other qualities, all of which were found in JLT.
. We had to set up a proper basis for us to be prepared for such a big process, em Glaser said, noting why such a big deal was not made years ago.
However, in order for any operation to take place, the time must feel right. Hakkında Stars and the moon need to be aligned for both companies, m he told analysts about his meeting with Burke. ”Both sides had to think the timing was right.“
The price also has to feel right. MMC has offered its shareholders an offer that they cannot refuse, including Jardine Matheson Holdings, a 40 percent stake. The 19.15 pound-a-share ($ 25.11) bid is 34 percent of the closing price of JLT on Monday and 25 times the JLT’s estimated 2019 revenue.
Purchasing will strengthen MMC’s specific risk intermediation operations, expand the global reinsurance network and increase its position in Asia and Latin America.
The deal will increase MMC’s revenues by approximately $ 17 billion. The company expects more cost savings ($ 250 million in nearly three years) and a faster revenue growth than smaller JLTs. Alı The JLT hit higher growth areas, ”Glaser said.
Glaser also said that JLT performed better than its peers and average 5 percent organic growth since 2012. The MMC provided revenue growth of about 3-5 percent per year.
Glaser, while making the acquisition a larger company, said şirket it accelerates küresel the MMC’s current strategy and the desire to be a leading global company in risk, strategy and people. Not a great departure from now on. ”Our knitting is staying in our network,“ he said.
Going beyond the terms and potential of the agreement, Glaser was unable to stop talking about the public after an agreement with analysts. The agreement will add approximately 10,000 employees to 55,000 MMC already existing globally.
Glaser said he’s known Burke for 15 years, and has been managing him and the company for a long time. Burke will join MMC as vice president and serve as a member of MMC’s Executive Committee.
Glaser said MMC and JLT will have the widest and deepest collection of talents in the industry.
Di They could have beat any broker in an account on any given day. They are extremely talented, highly motivated and highly specialized. Son
The accolades continued to come: “JLT, above its weight“ C, the deal ı a tremendous ability injection…, her JLT… is perfect in everything they do yetenek and JLT people share MMC’s ın culture of honesty LT and “brutal Ö. Focus on customer service. “
He asked how to bring the cultures together and how to hang them, the MMC CEO said that the cultures were very similar and the resulting company would be the çalışan preferred employer ağ in the industry.
He expressed the same attitude towards keeping an account: ifade We do not give any accounts. We will fight to keep every account. “
Although JLT has some traditional wholesale business in its mix, Glaser said the deal did not mean that Marsh returned to its wholesale business when Crump sold its wholesale broker in 2005. He stated that his wholesale sale was ”an archaic Toptan. What he said turned out to be a private settlement business rather than a traditional third party wholesale brokerage business. He said he had some work, but JLT, doesn’t have a dramatic amount of third-party wholesale business, Her he said. U Crump isn’t what we’ve come to when we sell it, tı he said.
Krallık What did he do?’T Glaser said to increase his share of the United Kingdom at a time when Brexit worried many people. The UK is insanlar a great place for business ”with flexible and remarkable people.
”We are happy to bet on England,“ he said.
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