Arthur J. Gallagher To Expand With McLean Insurance Buyout

 | Mar 26, 2019 05:38AM ET

Arthur J. Gallagher & Co. (NYSE:AJG) has acquired McLean Insurance Agency, Inc to ramp up its portfolio and consolidate presence in Northern Virginia. The terms of the transaction have not been revealed.

Established in 1971, Potomac Falls, VA-based McLean Insurance Agency is a property/casualty and employee benefits consultant catering to clients across Eastern United States. Addition of McLean Insurance to the broker’s portfolio will not only consolidate its presence in Northern Virginia but enhance its high-net-worth personal lines offerings in the region.

Arthur J. Gallagher is one of the top five global brokers. The company has been aggressively expanding its business, especially internationally. Organic growth coupled with strategic acquisitions is driving better results at both Risk Management and Brokerage segments.

The company witnessed organic growth for 26 straight quarters in both its Brokerage and Risk Management segments. The top line more than doubled in the last six years.

Arthur J. Gallagher’s revenues are geographically diversified with strong domestic and international operations. Year to date, the Zacks Rank #3 (Hold) insurance broker has already made two acquisitions and inked agreements to make two more.

Given its solid capital position, the company remains focused on pursuing more strategic buyouts. The company targets about $1.5 billion to $1.7 billion of mergers and acquisitions with free cash and debt.

Shares of Arthur J. Gallagher have gained 6.6% year to date, underperforming the industry's increase of 14.7%. The company’s policy to ramp up its growth and capital position should continue to drive shares higher.