WTW to sell TRANZACT for $632.4 million, expects $1.6 billion to $2.1 billion charge
WTW agreed to sell its TRANZACT direct-to-consumer insurance distribution business for $632.4 million, subject to adjustments, to a buyer formed by funds affiliated with GTCR LLC and Recognize Partners. The company expects non-cash pre-tax losses and impairment charges of $1.6 billion to $2.1 billion in the third quarter of 2024, which could differ materially from the preliminary estimate, and the sale is expected to close by the end of 2024.
- Sale price is $632.4 million, subject to certain adjustments, with the buyer being Project Granite Buyer, Inc.
- Third-quarter 2024 non-cash pre-tax losses and impairment charges are estimated at $1.6 billion to $2.1 billion, including a goodwill write-down at the Benefits, Delivery & Administration reporting unit.
- Closing is expected by the end of 2024, subject to Hart-Scott-Rodino clearance and other customary conditions.
- The Board of Directors has approved the transaction, and the company may record further losses until closing.