Marsh and McLennan Companies’ (MMC) acquisition of Jardine Lloyd Thompson Group (JLT) gives it the “greatest concentration of talent in our industry”, according to Dan Glaser, president and CEO of MMC.
On Tuesday, MMC agreed to acquire JLT in a deal worth $5.6 billion, which it expects will be closed in spring 2019.
Marsh agrees to acquire JLT
Following the announcement of the deal, Glaser said that the acquisition leverages “many complementary strengths of both organisations”.
He stated: “JLT is a premier organisation in our industry. This transaction will further enhance our position as the leading professional services firm, serving clients around the world on the key issues of risk, strategy, and people.
“The true value in any transaction in our industry is the people. Put simply, the combined MMC and JLT will have the greatest concentration of talent in our industry.”
“We have a shared commitment to excellence, integrity, and a culture of collaboration and what makes both firms unique is our people.”
He added: “Together we will have the broadest and deepest collection of talent in the industry, with a singular focus in serving clients with excellence and distinction.”
“We estimate the addition of JLT will increase MMC revenues to approximately $17 billion and they add over 10,000 people to our roughly 65,000 colleagues worldwide.”
In a filing to the US Securities and Exchange Commission, MMC revealed that it expects to cut between three and five percent of the combined workforce following the completion of the deal–which means the loss of an estimated 3,750 jobs.
Marsh & McLennan to cut 5 percent of jobs after JLT deal
According to Glaser, the acquisition adds strength to both organisations.
He explained: “JLT make us stronger in markets such as the UK and Australia and add to our positions in key growth markets such as Asia and Latin America.”
“They provide further scale and skills to our global reinsurance business and they increase our retirement and benefits presence around the world, especially in the UK.”
“We also see the opportunity to enhance several areas of JLT’s business including accelerating growth in global employee benefits and their developing US footprint.”
Glaser concluded: “We believe the acquisition of JLT provides compelling value for clients and colleagues of both organisations as well as our respective shareholders.”
“This acquisition is about one word, growth. JLT accelerates our strategy to drive higher revenue and growth by pushing MMC further into faster-growing geographies and market segments while enhancing our capabilities. We are stronger together.”
