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Aon Secures Billions in Credit to Fund Hewitt Acquisition

Source: Aon Corp.

Posted on 18 Aug 2010

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In the wake of an agreement announced last month under which Hewitt Associates will merge with a subsidiary of insurance brokerage Aon Corporation, Aon has secured credit agreements for up to $2.5 billion to fund the acquisition.

Aon says that the three-year unsecured term loan facility of up to $1 billion and an unsecured bridge loan of up to $1.5 billion will be used to fund the acquisition of Hewitt Assoicates, a human resources services firm.

Aon intends to integrate Hewitt with its existing consulting and outsourcing operations (Aon Consulting) and operate the segment globally under the newly created Aon Hewitt brand. In addition, Russ Fradin, chairman and chief executive officer of Hewitt, will serve as chairman and chief executive officer of Aon Hewitt, reporting to Greg Case, chief executive officer, Aon Corporation.

Hewitt is one of the world's leading HR consulting and outsourcing companies. Hewitt helps more than 3,000 clients and their employees around the world anticipate and solve their most complex benefits, talent, and related financial challenges through three primary business lines: consulting, benefits outsourcing and HR business process outsourcing. Hewitt, combined with Aon Consulting, will build upon those strengths, creating a global leader in human capital solutions, with diverse product and service capabilities and world-class associates to effectively serve clients' evolving needs.