BB&T has agreed to buy a wholesale insurance company in a move that should increase the Winston-Salem, N.C., company's annual insurance revenue by 15%.
The $210 billion-asset BB&T said in a press release Wednesday that it will pay $500 million in cash for CGSC North America Holdings Corp., which operates as Swett & Crawford. The deal is expected to close by June 30.
Cooper Gay Swett & Crawford Ltd., a U.K. reinsurance brokerage firm, reportedly had been
BB&T said the purchase should add more than $200 million in annual revenue. The company said it expects to record about $500 million of goodwill and intangibles as a result of this acquisition. The deal excludes Swett & Crawford's business outside the United States.
The acquisition "nicely enhances our insurance business and increases and diversifies our overall fee income profile," Kelly King, BB&T's chairman and chief executive, said in the release. "With its long history and broad offerings, Swett & Crawford is a great strategic fit for BB&T."
BB&T said the capital used to buy Swett & Crawford represents a reallocation of the rest of the company's approved share repurchases under last year's Comprehensive Capital Analysis and Review.
King recently said BB&T would
Deutsche Bank Securities and Willkie Farr & Gallagher advised BB&T.