Arthur J. Gallagher Expands With Walsdorf Agency Buyout
Zacks Investment Research | Jan 02, 2020 09:51PM ET
Arthur J. Gallagher & Co. (NYSE:AJG) has acquired Walsdorf Agency, Inc. The details of the transaction have been kept under wraps.
Huntington, NY-based Walsdorf Agency was established in 1926. The company is a third generation, family owned commercial and personal lines insurance agency. Its clients range from individuals with personal insurance needs to small and large businesses with broader needs. It offers knowledge and expertise and has a solid real estate niche expertise. It focuses on protecting and serving its clients.
The addition of Walsdorf Agency to Arthur J. Gallagher’s portfolio will aid the latter in further expansion and boost its growing Real Estate Practice.
The recent buyout is the first for Arthur J. Gallagher in the first quarter of 2020. A strong capital position along with solid operational performance should continue to back Arthur J. Gallagher in its inorganic efforts.
Given the insurance industry’s high capital level, companies are aggressively pursuing mergers and acquisitions. Arthur J. Gallagher’s inorganic pipeline remains strong with revenues of about $400 million. In the first nine months of 2019, the company completed 35 mergers with more than $330 million of annualized revenues. These acquisitions provide it with incremental capabilities and services that benefit clients in Australia, the UK, Europe and the United States. The company targets about $1.5 billion of mergers and acquisitions with free cash and debt.
Recently, there have been a number of acquisitions in the insurance brokerage industry, given the significant capital available. Brown & Brown’s (NYSE:BRO) unit Brown & Brown of South Carolina, Inc. recently acquired the assets of Insurance Management Group, Inc. (IMG).
Shares of this Zacks Rank #4 (Sell) insurance broker have gained 51.1% in the past two years, outperforming the 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.