8-KAcquisitions & DispositionsOther EventsExhibits & Filings

MARSH & MCLENNAN COMPANIES, INC. 8-K Report, Acquisition Completed (Aug 9, 2010)

Filed August 9, 2010For Securities:MRSHMMC

Summary

Marsh & McLennan Companies, Inc. (MMC) has filed an 8-K report detailing the completion of the sale of its wholly-owned subsidiary, Kroll Inc., to Altegrity, Inc. This transaction, finalized on August 3, 2010, involved the sale of 100% of Kroll's shares for approximately $1.13 billion in net cash proceeds before working capital adjustments. The divestiture of Kroll, a business previously classified as a discontinued operation in MMC's second quarter 2010 filings, signifies a strategic shift for Marsh & McLennan. Investors should note that this sale is expected to materially impact MMC's financial structure and future operational focus. The company has provided unaudited pro forma consolidated financial statements as an exhibit to this filing, intended to illustrate the potential historical impact of this sale on MMC's financial position and results. This move likely signals a streamlined business strategy for MMC, allowing it to concentrate on its core operations, potentially leading to improved financial performance and a more focused market presence.

Key Highlights

  • 1Completion of the sale of Kroll Inc. to Altegrity, Inc. on August 3, 2010.
  • 2MMC received approximately $1.13 billion in net cash proceeds from the sale.
  • 3Kroll Inc. was previously classified as a discontinued operation by MMC.
  • 4The sale involved 100% of the issued and outstanding shares of Kroll Inc.
  • 5MMC has provided unaudited pro forma financial statements to show the historical impact of the sale.
  • 6The transaction is a significant divestiture, potentially allowing MMC to focus on core businesses.

Frequently Asked Questions

Marsh & McLennan Companies, Inc. (MMC) sold its indirect wholly-owned subsidiary, Kroll Inc., to Altegrity, Inc.

MMC received approximately $1.13 billion in net cash proceeds from the sale. Kroll was also classified as a discontinued operation by MMC prior to the sale.

While the filing doesn't explicitly state the strategic reasons, the divestiture of a subsidiary classified as a discontinued operation typically indicates a company's strategy to streamline operations, focus on core competencies, and potentially improve financial performance.

Pro forma financial statements show how the company's historical financial statements might have looked had the sale of Kroll occurred at an earlier point in time. They are included to help investors understand the potential impact of the transaction on MMC's financial position and results of operations.