The deal will broaden Gallagher’s choices in area of interest segments, together with transportation, power, healthcare, authorities contractors and public entity, and bolster its enterprise within the UK and Ireland.
Gallagher mentioned the deal’s web consideration was about $12.45 billion, reflecting about $1 billion deferred tax asset. Shares of the Illinois-based firm dipped 0.3%.
Private fairness agency GTCR — which based AssuredPartners in partnership with trade veteran Jim Henderson — mentioned the deal was the biggest sale of a U.S. insurance coverage dealer to a strategic acquirer within the trade’s historical past.
AssuredPartners distributes insurance coverage throughout property and casualty, business, worker advantages and private traces. It generated $2.9 billion in adjusted income for the 12 months ended Sept. 30.
GTCR initially owned AssuredPartners from its inception in 2011 until 2015, when it bought the Florida-based firm to non-public fairness agency Apax Partners.
In 2019, an investor group led by GTCR agreed to accumulate it from Apax, which retained a minority stake within the firm.
Gallagher had the chance to check notes with AssuredPartners final 12 months, its Chief Financial Officer Douglas Howell instructed analysts.
At one level, AssuredPartners determined it wished to do an preliminary public providing, Howell mentioned, including that the deal got here again on over the past six weeks with no funding bankers concerned.
MIDDLE-MARKET EXPANSION
The deal will deepen Gallagher’s footing within the business middle-market house, the place it has operated for almost a century.
The broad U.S. footprint and middle-market focus of AssuredPartners make it an excellent merger accomplice, Gallagher CEO Patrick Gallagher mentioned in an announcement.
Middle-market insurance coverage caters to mid-sized companies that generate annual income between $10 million and $1 billion.
“We’re going at hand them instruments, particularly within the information and analytic world, and they’ll make them extremely stronger of their native communities, which is the place we see large progress,” Pat Gallagher mentioned in an interview with Reuters.
Gallagher expects to finance the transaction via a mixture of money, debt and fairness. Separately, it unveiled an $8.5 billion inventory providing to fund the acquisition and secured a $13.45 billion short-term mortgage.
The deal, which is anticipated to spice up Gallagher’s adjusted revenue by double digit, is anticipated to shut within the first quarter of 2025.
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Reporting by Pritam Biswas and Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar and Alan Barona
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