Firms: Minter Ellison (IAG); Webb Henderson (IAG); Herbert Smith Freehills (Wesfarmers); Russell McVeagh (Wesfarmers)
Deal: IAG purchases the underwriting operations of the Australian and New Zealand insurance division of Wesfarmers.
Key Players: Five partners from Minters acted on the deal. The lead partner was Sydney M&A head James Philips (pictured), with fellow partners Mark Standen, Christopher Brown, Paul Schoff and Daniel Scotti also involved. Senior associates Louella Stone and Martin Wright were additional members of the Minters team that acted for IAG in Australia. Webb Henderson acted for IAG in New Zealand. Herbert Smith Freehills were the Australian legal advisers for Wesfarmers, with leading New Zealand firm Russell McVeagh representing the food and business giant in New Zealand.
Value: $1.845 billion
Deal Significance: Wesfarmers is one of Australia’s largest listed companies, with business interests that include supermarkets, department stores, energy and fertilisers, coalmining and insurance.
This particular deal saw the company sell the underwriting operations of its Australian and New Zealand insurance division to IAG for $1.845 billion.
Under the terms of the transaction, IAG has acquired the WFI, Lumley and Affinity & Direct insurance businesses in Australia and the Lumley business in New Zealand. Wesfarmers' insurance broking businesses are not included in the transaction.
“I am thrilled that we have helped IAG to analyse, negotiate and document this significant transaction," said Philips.
The deal is expected to be completed by the end of the financial year. IAG has forecast gross written premiums of between 5 to 7 per cent for FY14 and net losses from ‘natural perils’ of around $640 million, which is in line with its budgeted allowance.
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