Summary
This 8-K filing by Aon Corporation on November 28, 2008, primarily announces the completion of its acquisition of Benfield Group Limited. In conjunction with this acquisition, Aon is implementing a global restructuring plan designed to integrate and streamline operations of the combined Aon Benfield entity. This plan is expected to incur cumulative costs of approximately $185 million through 2011, primarily for workforce reductions (estimated 500-700 positions, largely non-client-facing), lease consolidation, and asset impairment. Investors should note the anticipated savings generated by this restructuring, which are projected to range from $33-41 million in 2009, escalating to $84-94 million in 2010, and achieving approximately $122 million in annualized savings by 2011. While these figures represent significant operational efficiencies expected from the Benfield acquisition, Aon notes that the full scope and impact of all restructuring components are not yet finalized, and actual results may vary. The company intends to file an amendment with more precise estimates once they are determined.
Key Highlights
- 1Aon plc has completed its acquisition of Benfield Group Limited.
- 2A global restructuring plan has been launched to integrate Aon and Benfield operations.
- 3The restructuring is expected to result in cumulative costs of approximately $185 million through the end of 2011.
- 4Approximately 500 to 700 positions are projected to be eliminated, primarily in non-client-facing roles.
- 5Significant cost savings are anticipated, starting at $33-41 million in 2009 and growing to $122 million in annualized savings by 2011.
- 6The company acknowledges that final savings, costs, and timing may differ from initial estimates.