Another centennial, local, independent, insurance agency acquired in Mass.
The Hilb Group continues its expansion in Massachusetts. After announcing three separate acquisitions in December of 2018, alone, the week the portfolio company made its first Massachusetts acquisition of 2019 with its purchase of the Marsh-Kemp Insurance Agency, Inc (“MK”). The agreement was effective as of March 1, 2019. As part of the terms of the transaction, Thomas McLear, MK’s Agency Leader, will continue on after the sale of the agency. He will oversee former MK Associates at both of the agency’s former Worcester and Auburn locations.
“As our agency evolves, the needs and desires of our clients change as well,” said McLear. “This new chapter provides growth opportunities for our employees and further expands our ability to serve our clients. We are very excited about joining the THG team.”
First established in 1912, MK has been a local, independent insurance agency based in Western Massachusetts for over a century. For The Hilb Group, this latest acquisition aligns nicely with its plans on expanding its geographic footprint within Massachusetts.
“MK’s long standing commitment to their clients and consistent growth strongly resonates with THG,” said Ricky Spiro, CEO of THG. “We look forward to the opportunities that lie ahead with another strong New England-based agency joining our team.”
The secret sauce in the Hilb Group’s acquisitions: Deep pockets
In 2015, The Hilb Group became a portfolio company of ABRY Partners, a Boston-based equity fund headquartered at 888 Boylston Street.
ABRY invests in high-quality companies and partners with their management to help build their businesses. Since its founding in 1989, ABRY has completed over $42.0 billion of leveraged transactions and other private equity, mezzanine or preferred equity placements, representing investments in over 450 properties.
According to ABRY, its strategy concentrates on industry sectors where they have substantial operating and investment experience and seek to bring their industry insight to the investment process.
In the case of ABRY’s investments in The Hilb Group, it notes the strategy is “to grow through targeted acquisitions in the middle market insurance brokerage space.” ABRY and The Hilb Group that they “will continue this strategy, as the insurance industry remains highly fragmented and prime for consolidation.”