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Paul, Weiss is an acknowledged leader among U.S. law firms representing Canadian public and private companies and their underwriters. With almost 50 years of history in Canada and an office in Toronto, our vibrant Canada practice is the largest among U.S. law firms and reflects our long-standing commitment to our clients in their Canadian–U.S. cross-border matters.
RSA Completes Sale of Its Majority Owned Canadian Insurance Brokerage Business
- Client News
- July 2, 2014
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.