Mercer announced today that it has entered into a definitive agreement
to acquire a 34% stake in South Africa-based Alexander Forbes Group
Holdings Limited (Alexander Forbes), becoming a key strategic
shareholder in the upcoming listing of Alexander Forbes on the
Johannesburg Stock Exchange (JSE). Alexander Forbes also announced today
its intention to list on the JSE. Alexander Forbes provides a range of
services to institutional and retail clients that align closely with
Mercer’s global business. Mercer is a wholly-owned subsidiary of Marsh &
McLennan Companies (NYSE: MMC), a global professional services firm
offering clients advice and solutions in the areas of risk, strategy,
and human capital.
“We are thrilled to have this opportunity to establish a relationship
with Alexander Forbes, a leader in the retirement, investments, and
employee benefits space in South Africa and broader Sub-Saharan Africa,”
said Julio A. Portalatin, President and Chief Executive Officer of
Mercer. “This is the beginning of a strong partnership that will
generate value for both of our firms and our respective clients. We are
particularly excited to significantly broaden our exposure to the growth
prospects present in South Africa and sub-Saharan Africa. Through this
investment, we will be able to support our global clients seeking to
enter and expand into the African market, and with our global reach and
capabilities, we will be able to support Alexander Forbes’ clients
seeking to grow outside of Africa.”
Alexander Forbes principally focuses on employee benefits and investment
solutions for institutional clients, and financial wellbeing and retail
financial solutions for individual clients. Services include retirement
funds and investment consulting, actuarial and administration services,
employee risk benefits and healthcare consulting, multi-manager
investments solutions, and personal lines and business insurance.
This transaction is conditional upon the listing of Alexander Forbes and
other customary closing conditions, including the receipt of requisite
regulatory approvals. BofA Merrill Lynch acted as financial advisor, and
Webber Wentzel in South Africa and Slaughter and May in the UK acted as
legal advisors on the transaction.
About Mercer
Mercer is a global leader in talent, health, retirement, and
investments. Mercer helps clients around the world advance the health,
wealth, and performance of their most vital asset – their people.
Mercer’s more than 20,000 employees are based in 42 countries and the
firm operates in over 130 countries. Mercer is a wholly owned subsidiary
of Marsh
& McLennan Companies (NYSE: MMC), a global team of professional
services companies offering clients advice and solutions in the areas of
risk, strategy, and human capital. With over 55,000 employees worldwide
and annual revenue exceeding $12 billion, Marsh & McLennan Companies is
also the parent company of Marsh,
a global leader in insurance broking and risk management; Guy
Carpenter, a global leader in providing risk and reinsurance
intermediary services; and Oliver
Wyman, a global leader in management consulting. For more
information, visit www.mercer.com.
Follow Mercer on Twitter @MercerInsights.
About Marsh & McLennan Companies
Marsh & McLennan Companies (NYSE: MMC) is a global professional services
firm offering clients advice and solutions in the areas of risk,
strategy, and human capital. Marsh
is a global leader in insurance broking and risk management; Guy
Carpenter is a global leader in providing risk and reinsurance
intermediary services; Mercer
is a global leader in talent, health, retirement, and investment
consulting; and Oliver
Wyman is a global leader in management consulting. With annual
revenue exceeding $12 billion, Marsh & McLennan Companies’ 55,000
colleagues worldwide provide analysis, advice, and transactional
capabilities to clients in more than 130 countries. The Company prides
itself on being a responsible corporate citizen and making a positive
impact in the communities in which it operates. Visit www.mmc.com
for more information.
About Alexander Forbes
Alexander Forbes is a specialised financial services group headquartered
in South Africa focusing on employee benefits solutions for
institutional clients, and financial wellbeing and retail financial
solutions for individual clients, in particular employees of the Group’s
institutional clients. The Group’s primary clients span both the private
and public sector market segments, including employers, retirement,
health, investment and other special purpose funds on the institutional
side, and individual members and beneficiaries of these funds, as well
as the wider individual market, on the retail side. The main services
provided by the Group include retirement funds and asset consulting,
actuarial, investment and administration services, employee risk
benefits and healthcare consulting, personal lines insurance, individual
financial advisory and multi-manager investment solutions. Alexander
Forbes’ principal geographic focus is in South Africa, where it has been
operating since 1935, sub-Saharan Africa, the UK and other selected
jurisdictions which have employee benefits legislative frameworks
similar to South Africa.
Copyright Business Wire 2014