Arthur J. Gallagher & Co. has inked a deal to acquire all the assets of William Gallagher Associates Insurance Brokers, Inc. for an undisclosed amount. The transaction is expected to close in the third quarter 2015. Massachusetts-based William Gallagher Associates offers middle-market and large clients commercial retail property/casualty (P/C) and employee benefits insurance brokerage and consulting services. Additionally, the company specializes in coverage for the High Tech, Life Science, Financial Institution, Healthcare, Real Estate and Renewable Energy industries in the retail P/C space. Moreover, its employee benefits business is highly competent in providing underwriting, communications, data analytics, and compliance as well as wellness services.
The takeover of William Gallagher Associates is not only expected to enhance the overall business of Arthur J. Gallagher but is also anticipated to strengthen its presence in Eastern U.S. Moreover, with annualized revenue of $50 million, William Gallagher Associates is expected to boost the acquirer's bottom line.
Arthur J. Gallagher is well known for consistently pursuing international expansion through acquisitions and has continued the trend in the current quarter as well. The company's buyout spree has taken its year-to-date tally to 19. Acquisition of New Jersey-based Solid Benefit Guidance, California-based e3 Financial and Alberta-based Vital Benefits Inc. reflect its endeavors in this respect. D
uring the first quarter of 2015, the insurance broker made 11 acquisitions with annualized revenues totaling $33.6 million. The company's solid liquidity position cushions its growth initiatives and therefore, will encourage it to undertake more acquisitions going forward.
Arthur J. Gallagher's compelling inorganic growth and strategic focus on global expansion may prompt analysts to raise its earnings estimates. This, in turn, might result in a possible rank upgrade for the company. Currently, the insurance broker carries a Zacks Rank #3 (Hold).
Other insurance brokers too are increasingly pursuing the inorganic growth route to boost prospects. Willis North America - a unit of Willis Group Holdings plc acquired Evolution Benefits Consulting earlier this month. Marsh & McLennan Agency LLC, which is a subsidiary of Marsh & McLennan Companies, Inc., recently acquired Texas-based MHBT Inc. Also, a subsidiary of Brown & Brown Inc. acquired certain assets of Bellingham Underwriters last month.