Morneau Shepell has reached an agreement to acquire the large-market, health and defined benefit (DB) pension plan administration business of Mercer in the United States. The purchase price of approximately US$57 million is payable in cash. The acquisition is expected to close in the third quarter of 2019.
“This planned acquisition is in line with our strategy to grow our business profitably in the U.S. market and further solidify Morneau Shepell as a leading provider of health and DB plan administration across the United States,” said Stephen Liptrap, President and Chief Executive Officer, Morneau Shepell. “I am looking forward to welcoming our new employees to Morneau Shepell. With their support and the support of our current staff, we will have the capacity and expertise to deliver exceptional services to our newly acquired clients.”
“We expect the transition to Morneau Shepell to be seamless,” said Louis Gagnon, Mercer’s President, U.S. & Canada. “We will work collaboratively with Morneau Shepell to ensure the ongoing delivery of quality service to our clients and their employees.”
In 2012, Mercer and Morneau Shepell successfully worked together following Morneau Shepell’s acquisition of Mercer Canada’s benefits administration and large market pension administration business.
Mercer will continue to provide large market health and benefits administration as well as midmarket DB pension administration services when they are bundled with the company’s consulting and brokerage services, including Mercer Marketplace 365 and 365+. Mercer will continue to provide large market health and benefit administration services for Mercer’s global clients who have employees in the United States.