British insurance broker Aon Plc is selling its employee benefits outsourcing business to private equity firm Blackstone Group LP for up to $4.8 billion.
Aon acquired the outsourcing business in 2010 as part of its $4.3 billion takeover of Hewitt Associates, with offices in Lincolnshire.
“The sale of our outsourcing platform creates incremental capital to strengthen growth in core operations, and accelerates the pursuit of inorganic growth opportunities that address emerging client needs, similar to recent acquisitions in cyber risk advisory and health brokerage solutions,” said Aon President and CEO Greg Case. “This transaction reinforces Aon’s position as the leading, global professional services firm focused on risk, retirement and health,” he added.
Aon, an insurance broker and risk manager that moved its headquarters to London from Chicago in 2012, would receive $4.3 billion in cash and up to another $500 million based on future performance, according to a report from Reuters.
The transaction, subject to customary closing conditions, is expected to close by the end of the second quarter of 2017. Aon, headquartered in London and active in more than 120 countries, is working with investment bank Morgan Stanley on the sale.
Aon did not immediately return calls for further comment or how the deal will affect employees at Hewitt Associates.
Medline Industries, a Lake County-based medical supply company, purchased the former Aon Hewitt campus that’s west of the Tri-State and north of Route 22. The 38-acre site has 269,000 square feet of office space in three buildings.
The sale of the employee benefits portion of the business has been looming for some time. Less than a month ago, it was reported that Aon was looking to sell the unit to Clayton Dubilier & Rice for $4.5 billion.
According to Reuters, Aon has reported better-than-expected fourth-quarter earnings, helped by strength in its retail business.
• Daily Herald Business Writer Kim Mikus contributed to this report.
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