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U.S.I. Holdings Corporation announced it has completed negotiations on a definitive agreement to acquire Dallas, Texas-based Summit Global Partners. The closing of the SGP acquisition, which is subject to customary closing conditions, is expected at the beginning of February 2005. Terms of the transaction were not disclosed.

Established in 1996, SGP specializes in risk management and employee benefits for middle market companies throughout the United States. With offices in Texas, Florida, Illinois, California, Tennessee, New Mexico and Michigan, SGP is expected to contribute approximately $66 million of revenues to USI on an annual basis.

USI has received a waiver from its lender group in conjunction with the transaction and commitments for another $80 million in borrowings on its existing term loan. The $80 million will be used to repay notes that will be issued in connection with the acquisition of SGP, to pay down borrowings on USI’s revolving credit facility and for general corporate purposes.

David L. Eslick, USI’s chairman, president and CEO, said, “With the completion of the negotiation and the signing of the merger agreement, I am pleased to be one step closer to officially welcoming Jeff Pan, Jeff Haynes, Jack Wagner and the SGP team to USI.”

Topics USA Mergers & Acquisitions