April Fool’s Day was no joke for Bob Hilb.
His company, the rapidly expanding insurance brokerage called the Hilb Group, closed on two acquisitions of out-of-town insurance agencies on April 1 as part of its deal-making streak that’s run nonstop for five years.
Its purchase this month of New Jersey-based P.A. Post Agency and New Hampshire-based Clark-Mortenson Insurance for undisclosed sums were the fourth and fifth of the year thus far for Hilb.
P.A. Post offers insurance policies to customers that operate commercial vehicles, such as taxis, limos and buses. It brings in nearly $20 million in annual revenue, Hilb said, which makes it the largest deal his company has done to date.
“That’s the largest deal we’ve ever done by 250 percent.”
That size deal is fueled by Hilb’s Boston-based private equity backer, ABRY Partners, which last year infused the company with a new nine-figure war chest.
The deals also mark the 24th and 25th insurance agencies that Hilb Group has scooped since it launched five years ago. Their addition gets the company closer to its goal of $100 million in annual revenue. It currently sits at about $93 million annually, Hilb said.
“These two deals get us really close to the $100 million number,” he said. “We have one more to close that will crest us over that.”
The Clark-Mortenson deal is Hilb’s first foray into New Hampshire and gives it a greater foothold in New England, which Hilb said is an important region for the company, accounting for about $35 million of its revenue. The agency’s specialties are in selling insurance for hospitality, eldercare, residential health facilities and technology clients.
As is typical with Hilb’s deals, terms were not disclosed and the leadership of the agencies stays intact. Money does change hands and the heads of the individual agencies take stock in Hilb Group, which is privately held. Brad Post, P.A. Post’s president, will continue to lead the company’s 43 employees under its existing name. Clark-Mortenson president Tom Minkler will continue to lead the company’s 48 employees under its existing name.
Hilb Group now has 570 employees in 48 offices, and counting. Hilb said the company has at least two other deals in the works that should be completed by the summer.
The company has been named one of Richmond’s fastest-growing companies three years running in the annual RVA 25 rankings.