Hub International Limited announced Tuesday, Dec. 19, its plans to acquire Vermont-based Coburn Insurance Agency. Hub says the $9 million revenue broker has entered into a letter of intent, with the proposed transaction resulting in the formation of one of the nation’s largest transportation insurance speciality practices, with an emphasis on trucking. Terms of the acquisition were not announced.
Hub International recently expanded its transportation practice in October with the acquisition of Kaufman and Kaufman, a $9 million revenue brokerage based in Salt Lake City. With the acquisition of Coburn, Hub says its transportation practice will have annualized revenue of about $25 million from more than $200 million in premiums, with operations in both the Eastern and Western United States. Hub says the combined strength of the operations will provide increased accessibility to insurance markets and will position the organization as a premier provider for transportation risks across the United States and Canada.
“We are making a substantial commitment to growth in the transportation brokerage sector, which is a profitable and underserved segment of the insurance market,” says Martin P. Hughes, chairman and chief executive officer of Chicago-based Hub International. “Specialty practices are an increasingly important component of our growth strategy, as evidenced by several of our recent acquisitions.”
Coburn has offices in Burlington, Vt.; Hilton Head, S.C.; Memphis, Tenn.; and Deland and New Smyrna Beach, Fla. Scott Light, Coburn’s president, will become president of Hub Transportation, reporting to Dale Kaufman, chief executive officer.
“Our partners at Coburn recognize the growth prospects presented by Hub, and we are ready to capitalize on all opportunities presented to us,” Light says. “Trucking companies require specialized insurance expertise, and we are confident that our national strategy will provide increased benefits for our transportation customer and insurance company partners. We look forward to expanding our customer base as a part of the Hub organization.”
Completion of the Coburn acquisition is subject to the execution of a definitive purchase agreement and other customary closing conditions. Closing on the transaction is expected during the first quarter of 2007.
