London reinsurance broker Benfield Greig Group announced that it had arranged to acquire $391.5 million in financing from Barclay’s Capital to fund its purchase of Dallas-based E.W. Blanch, announced April 16th. The offer will expire May 25th, unless it is extended.
Benfield’s agreement values EWB’s outstanding shares at $13.50, a total of $179 million.
“It is intended that this new debt facility will provide Benfield Greig with the financing necessary to complete the acquisition of E.W. Blanch as well as to refinance certain of the existing indebtedness of E.W. Blanch and Benfield Greig and to provide working capital for the enlarged group going forward,” said the announcement.
Benfield CEO Grahame Chilton said he was “encouraged by the strongly favorable reaction that we have received to the proposed merger from E.W. Blanch’s customers, management and employees.”
The combination would create the world’s third largest reinsurance broker, headed only by Aon and Marsh Inc.’s. Guy Carpenter.
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