Simpson Thacher, Cravath Lead Aon’s $17 Billion USI Buy From KKR

KKR & Co agreed to acquire A1 Garage Door Service for around $2 billion, according to sources. The deal follows a trend of private equity firms investing in residential services due to steady cash flows and high values in fragmented markets. A1 operates in 20 states and received growth capital from Cortec Group in 2022.

KKR sold USI Insurance Services to Aon for $17B, marking its largest exit from its Strategic Holdings portfolio. KKR acquired USI in 2017 for $4.3B and made additional investments, achieving a 6x return on original equity. The sale is expected to close in Q4 2026, with KKR receiving $3.3B in after-tax proceeds.

Aon to acquire USI for $17B, expanding its US middle-market insurance brokerage. USI has $3B in annual revenue. Aon expects $395M in annual EBITDA synergies, with the deal expected to close in Q4 2026. Aon will fund the acquisition with new debt and maintain current credit ratings.

Aon, a Dublin-based insurance firm, agreed to acquire USI Insurance Services for $17 billion, expanding its middle-market business. The deal is expected to close in Q4 2026 and will add USI's $3 billion revenue and 10,500 employees. Aon plans to fund the acquisition with new debt and expects $395 million in annual Ebitda synergies.

Aon plc (AON) is acquiring USI Insurance Services for $17 billion, expanding its U.S. middle-market insurance brokerage presence. The deal, expected to close in Q4 2026, aims to generate $395 million in annual EBITDA benefits and become EPS accretive by 2028. AON's stock has fallen 4.9% in six months, while peers like LNC, WTW, and THG show positive momentum.

Mizuho analyst Yaron Kinar maintained an 'Outperform' rating for AON but lowered the price target to $398 from $437. AON is seen as 18.2% undervalued with a GF Value™ of $392.67. Insider activity shows significant selling, while the GF Score™ is 94/100, indicating strong performance in profitability and growth.