Drive-through deal

Bob Hilb might never look at a Taco Bell the same way again.

In its third deal since September, Hilb’s Glen Allen-based insurance brokerage firm, the Hilb Group, on Monday acquired an insurance agency that caters to fast food restaurants.

The financial specifics of the deal were not disclosed, but the purchase of Nashville-based MDM Covenant Insurance is the latest in a string of acquisitions the Hilb Group has made with the help of a multimillion-dollar capital backing from a New York private investment firm.

MDM brings with it about 14 employees and offices in Nashville and Atlanta. It also has a stable of property and casualty insurance customers that include franchised Taco Bells and Pizza Hut restaurants across the country.

And Hilb says the company isn’t done buying.

“The market is really aggressive right now,” Hilb said. “There are a lot of people [insurance agencies] looking to sell.”

Hilb Group, which buys and owns insurance agencies, has another deal lined up, and its closing is pending. That’ll be its fourth addition since it sold a majority stake of itself to BHMS Investments, the investment firm in New York that gave Hilb a pile of cash to go on a buying spree.

The first purchase came last September when it acquired Richmond-based Venture Specialty Insurance. A few days later, it opened an office in Rochester, N.Y., and expanded its office in Bay Shore, N.Y.

Hilb expects two more deals to close this year, although the company will look at dozens of potential candidates to reach that goal.

“Our business is kind of a one-in-10 scenario,” Hilb said. “Maybe two in 10.”

Hilb has never disclosed the exact amount of money it received from BHMS, only saying that it’s in the low eight figures.

In a little over a year, the company has spent most of that money.

“With the [pending] fourth deal, we’re through about 80 percent, and we’re already in conversations to restock the pantry,” Hilb said.

The company will soon begin to look for more capital. It will start with BHMS but go elsewhere if necessary, Hilb said.

Hilb isn’t sure how much money he’ll go after, but it will likely be at least twice the amount from its first round.

With several agencies and about 50 employees in its ranks, the Hilb Group generates about $10 million in revenue annually, Hilb said.

“Our long-term goal is to grow the business to the $50 million to $100 million range,” he said. “The next chunk of capital will get us to that goal.”

Bob Hilb might never look at a Taco Bell the same way again.

In its third deal since September, Hilb’s Glen Allen-based insurance brokerage firm, the Hilb Group, on Monday acquired an insurance agency that caters to fast food restaurants.

The financial specifics of the deal were not disclosed, but the purchase of Nashville-based MDM Covenant Insurance is the latest in a string of acquisitions the Hilb Group has made with the help of a multimillion-dollar capital backing from a New York private investment firm.

MDM brings with it about 14 employees and offices in Nashville and Atlanta. It also has a stable of property and casualty insurance customers that include franchised Taco Bells and Pizza Hut restaurants across the country.

And Hilb says the company isn’t done buying.

“The market is really aggressive right now,” Hilb said. “There are a lot of people [insurance agencies] looking to sell.”

Hilb Group, which buys and owns insurance agencies, has another deal lined up, and its closing is pending. That’ll be its fourth addition since it sold a majority stake of itself to BHMS Investments, the investment firm in New York that gave Hilb a pile of cash to go on a buying spree.

The first purchase came last September when it acquired Richmond-based Venture Specialty Insurance. A few days later, it opened an office in Rochester, N.Y., and expanded its office in Bay Shore, N.Y.

Hilb expects two more deals to close this year, although the company will look at dozens of potential candidates to reach that goal.

“Our business is kind of a one-in-10 scenario,” Hilb said. “Maybe two in 10.”

Hilb has never disclosed the exact amount of money it received from BHMS, only saying that it’s in the low eight figures.

In a little over a year, the company has spent most of that money.

“With the [pending] fourth deal, we’re through about 80 percent, and we’re already in conversations to restock the pantry,” Hilb said.

The company will soon begin to look for more capital. It will start with BHMS but go elsewhere if necessary, Hilb said.

Hilb isn’t sure how much money he’ll go after, but it will likely be at least twice the amount from its first round.

With several agencies and about 50 employees in its ranks, the Hilb Group generates about $10 million in revenue annually, Hilb said.

“Our long-term goal is to grow the business to the $50 million to $100 million range,” he said. “The next chunk of capital will get us to that goal.”

Your subscription has expired. Renew now by choosing a subscription below!

For more informaiton, head over to your profile.

Profile


SUBSCRIBE NOW

TERMS OF SERVICE:

ALL MEMBERSHIPS RENEW AUTOMATICALLY. YOU WILL BE CHARGED FOR A 1 YEAR MEMBERSHIP RENEWAL AT THE RATE IN EFFECT AT THAT TIME UNLESS YOU CANCEL YOUR MEMBERSHIP BY LOGGING IN OR BY CONTACTING [email protected]

ALL CHARGES FOR MONTHLY OR ANNUAL MEMBERSHIPS ARE NONREFUNDABLE.

EACH MEMBERSHIP WILL ONLY FUNCTION ON UP TO 3 MACHINES. ACCOUNTS ABUSING THAT LIMIT WILL BE DISCONTINUED.

FOR ASSISTANCE WITH YOUR MEMEBERSHIP PLEASE EMAIL [email protected]




Return to Homepage

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments