The Republic's biggest insurance broker, Coyle Hamilton, has been sold to international insurance broker Willis, with industry sources suggesting a price tag of more than €70 million.
Coyle Hamilton is owned by 43 of its senior executives, who purchased the company in 1995. The biggest shareholder, chief executive Mr Hugh Governey, is expected to receive around €7 million from the deal. He will head up the merged business, which will be called Coyle Hamilton Willis.
Coyle Hamilton's other main shareholders are Mr Bill Cooney and Mr Kieran Kelly, who will receive more than €4 million each. Mr David Cowman and Mr Jim O'Mahoney will benefit to the tune of more than €3.5 million each. All of the 43 shareholders will receive a cash payment.
Under the terms of the deal, Coyle Hamilton is selling a majority stake in the brokerage to Willis with the remainder to be sold after five years.
Announcing the deal yesterday, Mr Governey said it would enable the enlarged business to offer a significantly enhanced range of services and resources to its clients.
"We do not believe we could have found a more attractive global partner than Willis, which has enjoyed exceptional success and growth in recent years," he said.
Willis chairman and chief executive Mr Joe Plumeri said the group had major growth plans.
"With its excellent reputation for client service and highly professional and experienced workforce, Coyle Hamilton will play a significant role in helping us realise our ambitions," Mr Plumeri said.
Willis initiated the discussions 12 months ago, targeting Coyle Hamilton as the broker that could best help it to achieve its ambition to establish a substantial footing in the Irish market.
Coyle Hamilton employs 500 staff while Willis has 25 employees in Ireland. Coyle Hamilton's clients include Irish Life & Permanent, the Gaelic Athletic Association, Pierce Construction, Trinity College Dublin, Bord na Móna and IBM.
Willis is the world's third-largest broker. In Ireland, its clients include Diageo, Bank of Ireland, British Land and Crampton builders.
In the year to the end of August 2003, Coyle Hamilton had a turnover of €51.2 million and reported after-tax profits of €5.4 million.
Willis has more than 300 offices in 80 countries and employ 14,500 people.
Following the completion of the transaction, the Coyle Hamilton and Willis businesses in London and Belfast will also merge.
The deal is subject to shareholder approval and must be sanctioned by the regulator. It is expected to be concluded in September.
Mr Governey said that he expected to remain on as chief executive until December 2005 and that the company's senior management team would remain with the business for the next five years.
All of Coyle Hamilton's employees will be invited to participate in the share option and share ownership schemes operated by Willis on completion of the deal, he said.
Coyle Hamilton can trace its roots back to 1903 when Coyle & Co was established as the first broker in Ireland. It has offices in Dublin, Limerick, Cork, Belfast and London.
Mr Governey led the management buyout of the firm in 1995, along with 40 other managers.
The firm is considerably bigger than its rivals in Ireland. which include firms such as Frank Glennon, First Ireland, Mike Murphy Insurance and O'Leary's in Cork, as well as the major international players.
