Arthur J. Gallagher's Buyout To Shore Up Scandinavian Base
Zacks Investment Research | Sep 06, 2017 11:01PM ET
Arthur J. Gallagher & Co. (NYSE:AJG) has recently acquired Nordic Försäkring & Riskhantering AB. However, details of the transaction are kept under wraps. The acquisition will help Arthur J. Gallagher widen its Scandinavian footprint.
Gothenburg, Sweden-based Nordic Försäkring & Riskhantering AB was established in 1991. The retail insurance company provides an array of commercial property & casualty insurance services to medium and large organizations. It also provides small business and personal lines solutions to members of affinity groups, professional groups and industry associations across Sweden.
Post takeover, Nordic Försäkring & Riskhantering AB will continue to operate from its current location under the leadership of Anders Mjaaland, head of Arthur J. Gallagher’s Scandinavian brokerage operations.
Scandinaviais a key area for the insurer’s strategic development and this latest buyout only adds to its previous successful acquisitions. The insurance broker had bought Norway-based Bergvall Marine AS, the international marine and energy insurance broker as well as Brim AB in Stockholm to consolidate presence there.
This acquisition enables Arthur Gallagher to leverage Nordic Försäkring & Riskhantering AB’s expertise in fields of life science and traditional Swedish manufacturing industry. It widens the acquirer’s presence in Sweden, boosting trade since Gothenburg is an important trade centre for manufacturing industries. The deal is also inclusive of Nordic Försäkring & Riskhantering AB’s recent buyout of Göteborgs Försäkringsmäklare Per Dahlkvist AB that has niche skill in construction, professional responsibility and occupational transport.
Strategic acquisitions made by the company have always strengthened its portfolio. Seven buyouts have been made by the company in the ongoing quarter.
The Zacks Rank #3 (Hold) insurance broker has put the steam behind its acquisition activity in retail employee benefits as well as wholesale brokerage areas. The pipeline remains strong with revenues worth $250 million.
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Shares of Arthur J Gallagherhave underperformed the .
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