Arthur J. Gallagher Buys California-Based Garnett-Powers
Zacks Investment Research | Sep 01, 2019 09:55PM ET
Arthur J. Gallagher & Co. (NYSE:AJG) recently acquired University Services Business of Garnett-Powers & Associates Insurance Services, Inc. The terms of the transaction have not been revealed.
California-based Garnett-Powers & Associates' University Services business was established in 1996. The company provides medical, dental, vision, life, AD&D and disability insurance plans to university postdoctoral scholars and visiting scholars as well as health insurance plans to university students. The acquisition is a strategic fit as it will help Arthur J. Gallagher ramp up its higher education practice. This marks the 10th buyout so far this quarter.
Arthur J. Gallagher is one of the top five global brokers, having a presence in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand and the United Kingdom. In the first half of 2019, the company completed 24 acquisitions, which should add about $193 million of annualized revenues. Its merger and acquisition pipeline is quite strong with about $400 million of revenues, which is expected to fuel inorganic growth. Given its solid capital position, the company is well poised to pursue more strategic buyouts. The company targets about $1.5 billion of mergers and acquisitions with free cash and debt
The Zacks rank #3 (Hold) insurance broker remains focused on its long-term growth strategies of delivering organic revenue growth and pursuing strategic mergers and acquisition. It is also focused on productivity improvements and quality enhancements that should help it post sturdy numbers in the future.
Shares of Arthur J. Gallagher have gained 3.6% quarter to date, outperforming the .
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