Insurance coverage brokerage Arthur J. Gallagher & Co. has signed a definitive settlement to amass Woodruff Sawyer for $1.2 billion.
Andy Barrengos, chairman and CEO of San Francisco-based Woodruff Sawyer, will function underneath the course of Peter Doyle, head of Gallagher’s U.S. retail property/casualty brokerage operations.
The deal, anticipated to shut within the second quarter of 2025, follows Gallagher’s a lot bigger late 2024 settlement to acquire AssuredPartners for $13.45 billion for its middle-market attain.
Woodruff Sawyer is one other middle-market play, but in addition has bigger shoppers. The brokage provides industrial property/casualty merchandise, worker advantages options, and threat administration companies from 14 U.S. places of work and one U.Okay. workplace.
Worker-owned Woodruff Sawyer ranked twenty fourth in Insurance coverage Journal’s 2024 Top 100 Independent Property/Casualty Agencies, with P/C income of about $214.7 million. AssuredPartners ranked fifth on Insurance coverage Journal‘s checklist.
Gallagher stated Woodruff Sawyer’s reported professional forma revenues and EBITDAC (together with anticipated synergies) for the trailing 12 months ended December 31, 2024, have been $268 million and $88 million respectively.
Rolling Meadows, Illinois-based Gallagher stated integration prices and anticipated non-cash administration retention prices are anticipated to whole $150 million over the subsequent three years.
The deal continues a pattern of latest dealer M&A from the three largest world insurance coverage brokers. In November 2024, Marsh McLennan accomplished the acquisition of McGriff Insurance Services for $7.75 billion. Aon accomplished a $13 billion acquisition of middle-market P/C dealer NFP final April.
Matters
Mergers & Acquisitions
A.J. Gallagher
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