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RSA Completes Sale of Its Majority Owned Canadian Insurance Brokerage Business
- Client News
- July 2, 2014
Practices
Paul, Weiss client RSA Insurance Group closed its sale of its majority-owned Canadian insurance brokerage business, Noraxis Capital Corporation, to a subsidiary of Arthur J. Gallagher & Co. The aggregate purchase price for the business, including minority interests but excluding excess working capital, was approximately Cdn$500 million. After minorities, and including estimated excess working capital, RSA received cash consideration of Cdn$441 million, which is subject to post-closing adjustments. The transaction follows from RSA's strategy and action plan announced in February, which includes the disposal of non-core assets.
Noraxis is one of Canada's largest P&C insurance brokers, operating through six majority-owned units located throughout Canada. Noraxis was founded by RSA Canada in 1999 and provides commercial, personal and employee benefits services on a retail basis. With a 300-year heritage, RSA is one of the world's leading multinational quoted insurance groups. Arthur J. Gallagher & Co. is an international service provider and plans, designs and administers a full array of customized, cost-effective property/casualty insurance and risk management programs.
The Paul, Weiss team advising RSA included corporate partner Adam Givertz and counsel Stephen Centa; and tax partner Scott Sontag.