Kelso & Company Completes $9.83 Billion Sale of Accession Risk Management Group to Brown & Brown, Inc.

Business Wire

NEW YORK--(BUSINESS WIRE)--
Kelso & Company, L.P. (“Kelso”), a leading middle-market private equity firm, announced it has completed the sale of its portfolio company, Accession Risk Management Group (“Accession,” fka “Risk Strategies”), to Brown & Brown, Inc. (NYSE: BRO) (“Brown & Brown”) in a primarily cash transaction valued at approximately $9.83 billion. This sale to a leading strategic acquiror represents one of the largest full private equity exits in insurance brokerage history, following Accession’s significant and consistent growth under Kelso’s ownership.

Accession is a Boston-based national insurance services platform that goes to market via its two subsidiary brands, Risk Strategies and One80 Intermediaries (“One80”). Risk Strategies is a leading retail brokerage offering comprehensive risk management advice, insurance and reinsurance placement for property and casualty, employee benefits, private client services, as well as consulting services and financial and wealth solutions. One80, established by Accession in 2019, has scaled rapidly to become a leading insurance wholesaler and program manager, with offices in more than 55 locations throughout the US and Canada.

In 2015, Kelso and Accession partnered to transform a regional retail insurance broker into a premier national insurance distribution platform. Under Kelso’s ownership, Accession expanded significantly through both organic growth and more than 180 acquisitions, increasing revenue to $1.7 billion from $130 million of revenue at Kelso’s initial investment. From 500 employees at Kelso’s acquisition, the platform has grown to employ ~5,500 professionals, serving a diverse base of clients. The sale to Brown & Brown unites two leading insurance distribution businesses and is the capstone of a decade-long partnership between Kelso and Accession management and employees.

“We are incredibly proud of Accession’s extraordinary growth and success,” said Steve Dutton, Partner at Kelso & Company. “Through disciplined execution of our value creation plan and excellent partnership between management and Kelso, Accession has developed into a highly differentiated business. We look forward to Accession’s continued success as part of Brown & Brown.”

John Mina, CEO of Accession, shared, “Over the course of nearly 30 years, Accession has advanced an innovative, specialist approach to risk management that has put our customers and associates first, and has produced meaningful value for our shareholders and partners. The last 10 years of that journey involved Kelso, who embodied an ethos of partnership and with whom we worked closely and collaboratively to scale Accession with common purpose and values. As we began contemplating the next major leap in our journey, we were adamant that a partner must have the capability and conviction to create an industry powerhouse, win amid industry consolidation, lead through innovation and champion our cultural values. We are pleased to have found that in Brown & Brown.”

Founder and Executive Chairman of Accession, Michael Christian, who launched Risk Strategies in 1997 and served as CEO until his retirement in 2019, commented, “I’m deeply grateful to our leaders, associates, and partners at Kelso. Collectively, we have built a remarkable business with a lasting entrepreneurial spirit. I wish Accession tremendous success in their next phase of growth in partnership with Brown & Brown.”

Advisors:

Evercore Inc. acted as financial advisor to Kelso and Accession. Debevoise & Plimpton LLP served as legal counsel.

About Kelso:

Kelso is a North American-focused middle-market private equity firm founded on the principles of partnership and alignment of interest championed by Louis Kelso, the inventor of the Employee Stock Ownership Plan (or ESOP). Kelso’s unique history drives a deep commitment to aligning the interests between the Firm’s partners, management teams, strategic partners, and limited partners. Over the last 40 years, the firm has built a strong track record of investing in and growing middle-market companies in the financial services, business services, and healthcare services sectors, as well as consumer carve-outs. Since 1980, Kelso has raised over $17 billion in capital commitments across 11 funds and has completed more than 140 investments. For more information, please visit www.kelso.com.

About Accession:

Accession is a Boston-based national insurance services platform that goes to market via its two subsidiary brands, Risk Strategies and One80 Intermediaries. Risk Strategies is a leading retail brokerage offering comprehensive risk management advice, insurance and reinsurance placement for property and casualty, employee benefits, private client services, as well as consulting services and financial and wealth solutions. With more than 30 specialty practices, Risk Strategies serves commercial companies, nonprofits, public entities, and individuals, and has access to all major insurance markets.

Established by Accession in 2019, One80 is a leading insurance wholesaler and program manager with offices in more than 55 locations throughout the US and Canada. One80 offers placement services and binding authority for property and casualty, financial lines, benefits, life, travel, accident and health, affinity and administrative services, warranty business and specialty coverage. One80 serves commercial companies, non-profits, public entities, individuals and associations and unions, and has access to insurance markets in the US, Canada, Europe and Asia.