Gallagher to buy AssuredPartners for $13bn

Broking giant Arthur J Gallagher, which has substantial captive management operations through subsidiary Artex, has agreed to buy US middle market broker AssuredPartners for $13.45 billion. 

Gallagher said AssuredPartners was an “ideal merger partner”. The deal is expected to close in the first quarter of 2025. 

Gallagher said it expects to recognise synergies of approximately $160 million and integration costs of approximately $500 million, including $200 million of non-cash retention awards, over the next 3 years. It said AssuredPartners would have added 10% to 12% to Gallagher’s earnings per share.

"We have held in high regard the fast-growing AssuredPartners franchise since its founding in 2011,” said J. Patrick Gallagher, Jr., Chairman and CEO. “AssuredPartners' entrepreneurial spirit, broad US footprint and middle-market focus make them an ideal merger partner for Gallagher.  

“By further leveraging our deep industry verticals, investments in data and analytics, access to specialty products, our common systems and standardized service model, together we can provide even more value to clients and further position Gallagher for future growth. 

"I look forward to welcoming the 10,900 AssuredPartners colleagues to our growing Gallagher family of professionals."

Randy Larsen, CEO of AssuredPartners added: "This marks a significant milestone in AssuredPartners' journey, showcasing the outstanding business we've built and strong growth we've experienced in just over a decade.  

“With Gallagher, we bring together not only unparalleled global resources and expert insights but also a team of exceptional employees whose expertise and dedication have been the driving force behind our success.  I am excited for our future together."

Gallagher said it expected the merger would further expand Gallagher's retail middle-market property/casualty and employee benefits focus across the US, deepen its capabilities across multiple niche practice groups, including Transportation, Energy, Healthcare, Government Contractors and Public Entity, add scale, expertise and talent to Gallagher in the UK and Ireland. 

Assured Partners is owned by private equity firm GTCR and has 10,900 employees in approximately 400 offices located across the US, the UK and Ireland.  Its pro forma revenues and EBITDAC for the trailing 12 months ended September 30, 2024 were approximately $2.9 billion and $938 million, respectively.

After giving effect to an estimated $1 billion deferred tax asset, the acquisition price is net consideration is  approximately $12.45 billion. 

“Gallagher expects to finance the transaction using a combination of long-term debt, short-term borrowings, free cash and common equity,” the company said. “The final funding does not inhibit Gallagher from continuing its ongoing tuck-in M&A strategy and contemplates Gallagher maintaining its current solid investment grade debt rating.”

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