Marsh has reached a management buyout deal with Construction Risk Partners (CRP) allowing the specialty US construction broker to operate as an independent entity, effective immediately.
The companies on Thursday announced they have entered into an agreement under which CRP management will buy back the company's stock from JLT Specialty USA. The terms of the transaction were not disclosed.
JLT purchased a majority stake in CRP in January 2017. The specialty construction risk broker was acquired by Marsh & McLennan Companies as part of its purchase of JLT, completed in April 2019.
CRP will maintain its headquarters in Branchburg, New Jersey following the deal.
"Marsh will continue to serve construction clients through the more than 600 construction experts across the US who provide advice, risk transfer solutions, and claims advocacy to more than 2,000 contractors and subcontractors," said Rob McDonough, US construction practice leader for Marsh JLT Specialty.
Joe Charczenko, partner of CRP, said the company has "great respect for JLT and Marsh" but "we look forward to building an exciting future as an independent specialty construction broker."
The deal follows an agreement by Marsh to sell renewal rights for various books of JLT broked wholesale business to startup broker McGill & Partners. Marsh was likely to lose the business, with rival US retail brokers preferring to access the London market through independent routes.