Aon nears $17 billion USI Insurance deal from KKR, WSJ reports

• KKR and Canadian pension fund Caisse de dépôt et placement du Québec purchased USI from Onex Corporation in 2017 for $4.3 billion, making this sale a nearly 4x return on the initial investment
• The acquisition would enhance Aon's capabilities in serving midsize businesses and is expected to increase the company's earnings per share
• This deal represents the latest in a series of major exits for KKR, following recent sales of its data-center cooling business CoolIT and Circor's aerospace unit

Summary

Key Transaction Details:

Aon Plc is nearing an agreement to acquire USI Insurance Services from KKR for approximately $17 billion, including debt, according to Wall Street Journal sources. The deal could be announced as early as Monday, pending successful conclusion of negotiations.

Companies Involved:

• Aon Plc (London-headquartered): Global insurance brokerage and professional services firm
• USI Insurance Services (Valhalla, New York): Insurance brokerage focused on midsize businesses
• KKR & Co (New York): Private equity firm and current USI owner

Financial Background:

KKR, along with Canadian pension fund Caisse de dépôt et placement du Québec, acquired USI from Onex Corporation in 2017 for $4.3 billion, including debt. The potential $17 billion sale price represents a substantial return on KKR's investment over approximately seven years.

Market Implications:

• The transaction marks another significant exit for KKR, adding to recent divestitures including its data-center cooling business CoolIT and Circor's commercial and defense aerospace unit
• The acquisition would enhance Aon's capabilities in serving midsize businesses and is expected to be earnings-accretive
• Deal represents consolidation in the insurance brokerage sector

Status:

Neither Aon, USI, nor KKR have confirmed the negotiations. Reuters could not immediately verify the report independently. The deal announcement timing depends on successful completion of ongoing negotiations.