Summary
Marsh & McLennan Companies, Inc. (MMC) announced on June 7, 2010, a definitive agreement to sell its subsidiary, Kroll Inc., to Altegrity, Inc. in an all-cash transaction valued at $1.13 billion. This divestiture is subject to customary closing conditions and regulatory approvals, indicating a strategic shift for MMC. For investors, this sale represents a significant cash inflow, which could be used for debt reduction, share repurchases, or strategic investments. The market will likely focus on how MMC intends to utilize these proceeds and the impact of the sale on its future revenue and profitability, given Kroll's previous contribution to the company's performance. The transaction's completion will mark a notable change in MMC's operational footprint.
Key Highlights
- 1MMC to sell Kroll Inc. to Altegrity, Inc.
- 2All-cash transaction valued at $1.13 billion.
- 3Sale is subject to regulatory approvals and customary closing conditions.
- 4The divestiture represents a significant strategic move for Marsh & McLennan Companies.
- 5The transaction is expected to generate substantial cash for MMC.