WLTW

Willis Towers Watson PLC

Finance/Real Estate, Healthcare, Event Driven/Special Sit


Presented:10/27/2015
Price:$116.85
Cap:$16.31B
Current Price:$291.14
Cap:$29.57B

Presented

Date10/27/2015
Price$116.85
Market Cap$16.31B
Ent Value$10.72B
P/E Ratio23.58x
Book Value$32.68
Div Yield2.68%
Shares O/S138.43M
Ave Daily Vol832,940
Short Int3.21%

Current

Price$291.14
Market Cap$29.57B
Willis Group Holdings Plc operates as a holding company engages through its subsidiaries in providing insurance brokerage, reinsurance and risk management services. The company operates through the following business segments: North America, International, and Global. The North America segment provides risk management, insurance brokerage, employee benefits brokerage and consulting services in the United States, Canada and Mexico. The International business segment provides reinsurance and risk management services in Western Europe, Central and Eastern Europe, the United Kingdom, Asia, Australasia, the Middle East, South Africa and Latin America. The Global business provides brokerage and consulting services. Willis Group Holdings was founded in 1828 and is headquartered in London, the United Kingdom.

Please note, on 1/5/16 Willis Group Holdings PLC (WSH) and Towers Watson & Co (TW) merged to create a new entity, Willis Towers Watson PLC (WLTW). As this was originally a WSH idea, presented data has been adjusted accordingly. The content of this idea will make reference to the original company name and ticker symbol.

Publicly traded companies mentioned herein: Aon Plc (AON), Towers Watson & Co (TW), Willis Group Holdings PLC (WSH)

Highlights

The presenter sees substantial upside potential for investors in a combined Willis Group (WSH)/ Towers Watson (TW) due to a lower tax rate, deal synergies, and accelerated EPS growth over the next three years. Shares of both companies came under pressure following the announcement of the merger (June 30, 2015), and the presenter attributed this to a unique scenario that pitted value (WSH) and growth (TW) investors against one another; however, once combined, the two “boring” companies should have substantial earnings power and “all of the levers that need to be pulled to achieve 20%+ EPS growth are within management’s control.”

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Idea Discussion

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