Carlyle, CVC, KKR Said to Bid for Onex's USI Insurance

  • Initial bids said to value company at more than $4 billion
  • Buyout firm bought USI in 2012 in $2.3 billion transaction

Carlyle Group LP, CVC Capital Partners and KKR & Co. are among suitors that have made first-round bids for Onex Corp.’s USI Insurance Services, according to people familiar with the matter.

The initial offers value the Valhalla, New York-based insurer at more than $4 billion, said the people, who asked not to be identified because the details are private. The sale process may attract interest from other bidders as well, the people said. Toronto-based Onex is working with Bank of America Corp. to advise on the process, one of the people said.

Onex, Canada’s largest buyout firm, bought USI from a fund run by Goldman Sachs Group Inc. in 2012, in a transaction valued at $2.3 billion. USI has since made more than 30 acquisitions to increase its network of insurers across the U.S., according to data compiled by Bloomberg.

Representatives for KKR, Carlyle and CVC declined to comment, while a representative for Onex didn’t respond to a request for comment.

USI, founded in 1994, now has more than $1 billion in annual revenue and 4,400 employees in 140 offices across the U.S., according to its website. It offers a portfolio of diversified insurance and financial services to its customers. 

Onex has been actively divesting parts of its portfolio, returning about $1.7 billion to the firm and its limited partners since the start of 2016, according to its latest financial results. It spun off window and door maker Jeld-Wen Holding Inc. in a January initial public offering that raised $661.3 million.

Onex also has been an active acquirer. It agreed to buy Parkdean Resorts, a U.K. operator of caravan holiday parks, for about $1.7 billion in December. That acquisition followed its $1.37 billion purchase of discount grocery chain Save-A-Lot Inc. in October.

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