Marsh ups risk biz with Kroll buyout

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Thursday, July 1, 2004

NEW YORK - Risk management firm Marsh & McLennan is buying one of the most well-known names in corporate security, Kroll Inc., in a $1.9 billion deal that brings together two firms with similar objectives.
In a conference call about the acquisition, Jeffrey Greenberg, chairman, president and chief executive officer of Marsh & McLennan, characterized each company as unique.

“What we see here is a combination of two growth businesses in risk services. It’s a powerful strategic fit,” he said. “The combination, we think, will accelerate the expansion of our risk services business, where we see growing client demand.”

Buying Kroll provides the risk management with data recovery and corporate detective work expertise. Kroll employs 3,200 people will help Marsh & Lennan’s risk-related consulting and processing business grow to approximately 10 percent of its $11 billion in revenue.

According to Greenberg, he approached Jules Kroll, founder of Kroll Inc., in February about a potential acquisition.The companies expect to complete the merger in the third quarter of this year.