Arthur J. Gallagher & Co. (AJG) has announced the acquisition of Bennett & Shade Co. in an attempt to strengthen its presence in Illinois and boost inorganic growth. The terms of the transaction were not disclosed.
Illinois-based Bennett & Shade is a retail insurance broker providing a wide range of services like commercial property/casualty, employee benefits, risk management consulting and personal lines insurance services in the Midwest.
Arthur J. Gallagher has been consistently enhancing its retail insurance business. Its recent takeover of firms such as Westfarmers Ltd., Caribbean-based Minvielle & Chastanet Insurance Brokers, CT-based Cowles & Connell and NY-based Hagedorn & Company reflect its endeavors in this respect.
With the latest acquisition, Arthur J. Gallagher will be able to capitalize on Bennett & Shade’s expertise in client service and focus on middle-market clients. The acquiree’s solid presence in Decatur, along with a strong client base will help Arthur J. Gallagher to consolidate its position in the market.
Post acquisition, Jeffrey Shade and its team will join Arthur J. Gallagher and continue to operate in Decatur under the guidance of the company’s Midwest head, Michael Pesch.
Arthur J. Gallagher has been on an acquisition spree this year. Taking into account the latest takeover, its year-to-date tally is 38. Notably, the company’s solid liquidity continues to aid its inorganic growth.
Arthur J. Gallagher’s compelling inorganic growth and strong focus to strengthen its retail insurance business will likely prompt analysts to raise their estimates, resulting in a rank upgrade on the stock. At present, Arthur J. Gallagher carries a Zacks Rank #3 (Hold).
Other insurance brokers have also been resorting to acquisitions to boost inorganic growth. For instance, Validus Holdings, Ltd. (VR) acquired New Jersey-based Western World, while Willis Group Holdings plc (WSH) declared that its North American reinsurance business, Willis Re Inc. has entered into an agreement to take over the assets of SurePoint Reinsurance Advisors, LLC. Moreover, Marsh Inc., the insurance brokerage wing of Marsh & McLennan Companies Inc. (MMC), acquired Montreal-based commercial insurance brokerage, Kocisko Insurance Brokers Inc.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment