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Marsh buys Sedgwick
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August 25, 1998: 8:18 a.m. ET
New York insurance company buys British competitor in $2B cash deal
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NEW YORK (CNNfn) - In yet another consolidation move in the insurance industry, Marsh & McLennan Co. agreed Tuesday to buy British competitor Sedgwick in an all cash deal valued at roughly $2 billion
The deal, already approved by both companies' boards, is expected to close in the fourth quarter and contribute to earnings by the year 2000.
"This transaction, which joins together two of the best-known names in risk and insurance services and consulting, will strengthen further our ability to meet the increasing global demand for professional services," said A.J.C. Smith, chairman and chief executive of Marsh & McLennan. "From a strategic standpoint, we believe this transaction will enhance shareholder value through a combination of stronger insurance broking practices, global reach and operating efficiencies."
Under terms of the deal, Marsh & McLennan of New York will pay 225 pence for each Sedgwick share and 11.25 pounds for each Sedgwick ADS.
Sedgwick is an insurance, reinsurance and risk consulting holding company that operates in 70 countries worldwide. Shares of the London-based company (SED) were unchanged Monday at 12-1/4 on the New York Stock Exchange.
Marsh & McLennan provides risk and insurance services, investment management and consulting in more than 100 countries.
The company's stock (MMC) closed Monday at 56-11/16, up 7/16, on the Big Board. 
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