Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Madison Dearborn to Buy NFP for $1.3 Billion

National Financial Partners Corp. Chief Executive Officer Jessica M. Bibliowicz, the daughter of former Citigroup Inc. CEO and Chairman Sanford Weill who has led NFP since 1999, plans to step down next month. Photographer: Scott Eells/Bloomberg
National Financial Partners Corp. Chief Executive Officer Jessica M. Bibliowicz, the daughter of former Citigroup Inc. CEO and Chairman Sanford Weill who has led NFP since 1999, plans to step down next month. Photographer: Scott Eells/Bloomberg

April 15 (Bloomberg) -- Madison Dearborn Partners LLC agreed to buy National Financial Partners Corp. in a deal valued at $1.3 billion including debt that can be converted into stock.

Madison Dearborn, a Chicago-based private-equity firm founded more than two decades ago, will pay $25.35 in cash per share of New York-based NFP, the companies said today in a statement. That represents a 26 percent premium to NFP’s closing share price on March 12, the day before the insurance brokerage and wealth-management company said it was considering selling itself.

NFP rose 6.8 percent to $25.01 at the close of trading in New York. The stock gained 17 percent this year through March 12 and has risen 46 percent so far this year.

“NFP has a solid foundation, and we are confident the company will thrive as a private enterprise in this next chapter of its evolution,” said Jessica Bibliowicz, the company’s chief executive officer.

Bibliowicz, the daughter of former Citigroup Inc. CEO and Chairman Sanford Weill, has led NFP since 1999, when the firm was a startup with $125 million of financial backing from Leon Black’s Apollo Management LP. Bibliowicz plans to step down next month, and the board is expected to appoint Douglas Hammond, NFP’s president and chief operating officer, as CEO, the company said.

Madison Dearborn has raised six funds with more than $18 billion since it was founded in 1992. The firm’s current investments in financial and transaction-services companies include money manager Nuveen Investments Inc. and EVO Payments International, a closely held payments processor, according to its website.

Bank of America Corp. and Cleary Gottlieb Steen & Hamilton LLP advised NFP’s board, and Skadden Arps Slate Meagher & Flom LLP was legal adviser to the company. Madison Dearborn was advised by UBS AG and Ropes & Gray LLP.

To contact the reporter on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.