INTERVIEW-Marsh & McLennan eyes acquisitions outside US

*CEO says Marsh Inc, other units could make acquisitions

*CEO says no plans for divestitures beyond two Kroll units

*CEO says Marsh likely to seek deals outside United States

By Lilla Zuill

NEW YORK (Reuters) - Brian Duperreault, chief executive of Marsh & McLennan Cos Inc (MMC.N), is on the lookout for acquisitions to bolster growth at the firm, and sees deals outside the United States as a good fit for the firm's insurance brokerage business.

Six months after taking the reins at the world's largest insurance brokerage, Duperreault said in an interview on Monday the firm could pursue "bolt-on acquisitions" for existing units, including Marsh Inc, the company's namesake brokerage.

Marsh & McLennan, which competes with smaller rivals Aon Corp AOC.N and Willis Group Holdings Ltd (WSH.N), also owns a reinsurance brokerage, Guy Carpenter, consulting units Mercer and Oliver Wyman, and Kroll, one of the first corporate gumshoe firms.

Marsh Inc, which accounts for nearly one-half of the group's total revenue, is in the midst of a broad restructuring. Marsh Inc cut 150 jobs in the first quarter, another 360 in the second quarter, outsourced 600 more in the United Kingdom, and now plans to cut 900 more through outsourcing, attrition, lay-offs, mostly in United States.

Duperreault said in that climate it would be "problematic" to make U.S. acquisitions, which can be "disruptive, dislocative."

But he sees acquisition opportunities for Marsh Inc outside the United States.

In his first months in office, Duperreault spent the bulk of his time meeting with clients and staff, trying to figure out what parts of the broad organization belonged in the family, and what pieces could be shed.

Six months later, Duperreault is in talks to sell two small units, and assessing which acquisitions could bolster existing businesses, which employ a total of 57,000 across 100 countries.

On the block are two units of corporate investigations subsidiary Kroll Inc -- a government services business, and another that provides services to mortgage lenders.

Beyond that, Duperreault -- brought in as chief executive after investors grew disgruntled over the firm's flagging profits -- thinks the other parts fit together well.

"The likelihood is that we have a set hand," said Duperreault, in the interview at his mid-Manhattan office.

Last week, Marsh & McLennan reported that second-quarter earnings topped Wall Street expectations and insurance brokerage revenue rose 8 percent, despite a global slump in insurance pricing.

HISTORY OF GROWTH

Duperreault, 61, was recruited by Marsh & McLennan after retiring from Ace Ltd (ACE.N), an insurer that Marsh & McLennan helped form in 1985 as an excess casualty carrier.

Duperreault, the Ace CEO from 1994 to 2004, grew the insurer from a small, Bermuda-based specialty carrier into a large, global player selling multiple types of insurance.

Much of the growth during his time as CEO was the result of acquisitions, including the $3.45 billion deal to buy Cigna's property-casualty business in 1999.

Duperreault told Reuters after the company's earnings report last Wednesday that he has received strong interest from potential buyers for the two Kroll units he plans to divest. (See related story:[nN06473717])

Earlier this year, Duperreault rebuffed private equity firm BC Partners, when it expressed interest in buying Kroll Inc as a whole.

On Monday, Duperreault declined to name parties interested in the Kroll units, and also would not say whether BC Partners was interested in the two businesses.

Other deals are on ice as buyers' financing options have been constrained by tighter credit markets.

Marsh & McLennan shares closed up 19 cents at $31.12 Monday on the New York Stock Exchange.

(Editing by Jeffrey Benkoe)