Arthur J. Gallagher Boosts Inorganic Growth With Buyout
Zacks Investment Research | Apr 01, 2018 10:52PM ET
Arthur J. Gallagher & Co. (NYSE:AJG) has purchased McGregor & Associates to strengthen its risk management potential in the southern region of California. This move in turn will likely fortify the company’s already robust inorganic growth portfolio. However, financial details of the transaction have been kept under wraps.
Details of the Transaction
Established in 1993, McGregor & Associates operates as a health benefits administrator and offers services to both private and public sector clients across the Californian state. Over a considerable period of time, the acquired company has built a name for itself, cashing in on its laudable public entity expertise. The company has a diverse clientele including educational institutions, public agencies, construction organizations as well as retiree medical trusts. Post completion of the buyout, the company will continue to operate from its current office location.
The team at McGregor & Associates displays prowess in health benefits administration plus boasts a stellar client service delivery as well as a brilliant reputation in the public entity marketplace. These in turn, are anticipated to further solidify and extend Arthur J. Gallagher’s capabilities in the public entity space.
Arthur J. Gallagher’s prudent M&A activity bears testimony to its inorganic growth strategy. The insurance broker remains optimistic about its capability to attract acquisition partners in its typical small tuck-in size at fair prices.
Banking on such strategic endeavors, Arthur J. Gallagher’s top line has been improving over a significant period of time, registering a five-year CAGR (2012-2017) at 19.6%.
Therefore, the company’s impressive growth has been mainly fueled by rising revenues as well as judicious buyouts and mergers. It has put the steam behind its acquisition activity in the retail employee benefits brokerage and wholesale brokerage areas. Arthur J. Gallagher’s merger and acquisition pipeline remains strong with about $300 million of revenues.
Zacks Rank and Share Price Movement
The company carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.