Associated Banc-Corp (Associated) announced it has entered into an agreement to acquire Ahmann & Martin Co., a risk and benefits consulting firm in Minnesota, through Associated’s subsidiary, Associated Financial Group. The transaction is expected to close in February.
Associated Financial Group is a benefits specialist firm with more than 240 insurance specialists across Associated’s three-state footprint and generating over $49 million of annualized insurance-related revenues. Associated Financial Group provides employee benefits, business insurance and human resource consulting, and select individual/private insurance services.
Ahmann & Martin Co. adds a range of complementary financial services such as employee benefits, risk management, and business insurance with specialization in industry-specific solutions.
Based on 2013 pro forma revenues, the company believes that this combination with Ahmann & Martin Co. will move Associated Financial Group among the United States’ top 50 insurance brokerage firms. Together, the firms will employ more than 370 colleagues and serve approximately 14,000 clients.
As part of the proposed transaction, several key Ahmann & Martin Co. executives will assume leadership roles at Associated Financial Group.
Dean Hildebrandt, the current CEO of Ahmann & Martin Co., will assume the role of president and CEO of the newly combined firm.
In addition, David Martin, benefits principal of Ahmann & Martin Co., will serve as executive vice president and lead Associated Financial Group’s overall benefits strategy.
Richard Ahmann III, property and casualty principal at Ahmann & Martin Co., will also continue with the firm playing a key role in helping to bring the businesses together.
Ahmann, Martin and Hildebrandt will all be members of Associated Financial Group’s board of directors.
The transaction is valued at approximately $48 million with the opportunity to increase the consideration by $8 million should certain contingencies be met over a defined period.
The transaction is not expected to have a material impact on Associated’s 2015 and 2016 earnings and is expected to be accretive to Associated’s 2017 earnings.
Source: Associated Banc-Corp
Topics Mergers & Acquisitions Minnesota
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