WTW expands trade credit business with CFS acquisition

NEW YORK - WTW (NASDAQ: WTW), a prominent advisory, broking, and solutions firm with a market capitalization of $30.4 billion and annual revenue of $9.8 billion, has acquired CFS International Inc., enhancing its trade credit insurance offerings, particularly on the U.S. West Coast. CFS, established in 1990, is known for crafting trade credit insurance solutions for global companies.For detailed analysis of WTW’s acquisition strategy and growth potential, InvestingPro offers comprehensive research reports with expert insights and advanced metrics.

Scott Burnett, Head of Corporate Mergers & Acquisitions for WTW’s Risk & Broking business, stated that this acquisition follows a recent one in the Midwest, marking WTW’s second in a short period and bolstering its national presence. Burnett emphasized the strategic alignment of CFS with WTW, aiming to strengthen their stance as a top trade credit provider.

Ralph Clumeck, President of CFS, expressed pride in joining WTW, noting the benefits for CFS clients, including broader market access and a more extensive product range. Bridget Clumeck is set to lead CFS under WTW, ensuring continuity in client service.

Todd Lynady, Regional Head of Willis Financial Solutions, remarked on the commitment to building a leading trade credit platform in North America and the anticipated benefits of integrating CFS’s clients and staff.

WTW serves 140 countries, offering data-driven solutions in people, risk, and capital management. The acquisition of CFS is part of WTW’s strategy to optimize its global portfolio and focus on high-growth broking businesses. According to InvestingPro analysis, the company maintains a FAIR financial health score, with analysts projecting profitability for the current year. This information is based on a press release statement and financial data.

In other recent news, Willis Towers Watson has made several significant moves. The company announced the acquisition of Global Commercial Credit, LLC, aiming to enhance its presence in the credit and political risk insurance market in North America. This acquisition is expected to diversify Willis’s client base and strengthen its sales capabilities. Fitch Ratings upgraded Willis Towers Watson’s Long-Term Issuer Default Rating to ’BBB+’ from ’BBB’, citing operational and margin improvements, with a stable outlook. This upgrade reflects the company’s solid market position and financial flexibility.

In leadership developments, Harry Merker has been appointed as the new Property and Casualty Cross Industry Sales Leader and Alternative Asset Insurance Solutions Sales, Strategy, and Execution Leader for North America. Additionally, Kate Harb and Dermot Sargent have taken on new roles to strengthen Willis Towers Watson’s data and digital strategies. UBS analyst Brian Meredith upgraded Willis Towers Watson’s stock rating to Buy, with a new price target of $395, anticipating improved operating and free cash flow margins. These developments indicate a strategic focus on growth and operational enhancements across various sectors for the company.

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