Arthur J. Gallagher this morning stated it has entered into an settlement to accumulate AssuredPartners for $13.45 billion money to develop its attain within the U.S. middle-market property/casualty and worker advantages area.
“Now we have held in excessive regard the fast-growing AssuredPartners franchise since its founding in 2011. AssuredPartners’ entrepreneurial spirit, broad U.S. footprint and middle-market focus make them a super merger accomplice for Gallagher,” stated J. Patrick Gallagher, Jr., CEO.
He added that Orlando, Florida-based AssuredPartners’ 10,900 staff can be welcomed to Gallagher. Business organizations, public entities and people are served by about 400 places of work within the U.S., the U.Ok. and Eire. Adjusted income over the past yr as of Sept. 30 was about $2.9 billion.
Gallagher stated the acquisition will increase its potential in a number of area of interest observe teams comparable to transportation, vitality, healthcare, authorities contractors and public entity.
Randy Larsen, CEO of AssuredPartners, stated the acquisition by Gallagher will “convey collectively not solely unparalleled international assets and knowledgeable insights but additionally a staff of remarkable staff whose experience and dedication have been the driving power behind our success.”
AssuredPartners ranked No. 5 in Insurance coverage Journal‘s 2024 Top 100 Independent P/C Agencies checklist based mostly on P/C income. AM Best’s ranking of the world’s largest insurance coverage brokers put AssuredPartners in 14th based mostly on 2023 whole income. Arthur J. Gallagher ranked third on the checklist, behind March McLennan and Aon.
With at this time’s announcement, Gallagher follows Marsh McLennan and Aon in making latest offers to faucet the center market. In April, Aon accomplished a $13 billion acquisition of middle-market P/C dealer NFP. Final month, Marsh McLennan accomplished the acquisition of McGriff Insurance Services for $7.75 billion.
AssuredPartners’ private-equity possession GTCR and Apax Companions were reportedly in search of companions for a full or partial sale of the brokerage for a number of months. Chicago’s GTCR stated Gallagher’s purchase of AssuredPartners is the “largest sale of a U.S. insurance coverage dealer to a strategic acquiror within the historical past of the trade.”
AssuredPartners had been an lively M&A participant over the past a number of years – most just lately with 17 transactions year-to-date as of Sept. 30, based on funding banking and monetary consulting agency OPTIS Companions. The dealer’s shopping for tempo had slowed a bit in 2022 and 2023 following 32 transactions in 2021.
The Gallagher-AssuredPartners deal is anticipated to shut through the first quarter 2025, pending regulatory approvals.
Gallagher stated the deal’s internet consideration is about $12.45 billion after a deferred tax asset. It expects to finance the acquisition with long-term debt, short-term borrowings, money, and fairness.
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