Arthur J. Gallagher & Co. (AJG) has announced the takeover of The Forker Company or Forker in Arlington Heights. The move marks an effort by the company to ramp up its retail insurance business. Terms of the transaction were kept under wraps.
However, the market did not respond favorably to the news, as the stock price fell 0.5% in the last trading sessions post announcement.
Illinois-based Forker is a retail insurance agency offering contract surety solutions to its Midwest clients since 2000. This company specializes in providing surety coverage for the construction industry.
Arthur J. Gallagher’s acquisition of Forker is aimed at expanding its sales in the construction industry. Forker’s surety expertise, along with industry experience, solid market relationships and client service will enhance the insurance broker’s business in the Midwest. Post acquisition, Peter Forker, the President of Forker Company, along with its associates will operate under the head of Gallagher's Midwest region retail property/casualty brokerage operation – Michael Pesch.
Arthur J. Gallagher has been consistently boosting its retail insurance business and increasing its geographical footprint. Its latest acquisitions, namely California-based SGB-NIA Insurance Brokers, Colorado-based Insurance Associates, Inc., Illinois-based Bennett & Shade Co. and New York-based Hagedorn & Company reflect its endeavors in this respect.
Notably, Arthur J. Gallagher, which generated annualized revenues of $693.6 million for the first nine months of 2014, is well known for pursuing acquisitions that help to expand its business globally. While the latest takeover marks the fifth one in the current quarter, the company has made 43 acquisitions year-to-date. The acquisition spree is expected to continue in the coming quarters.
Notably, Arthur J. Gallagher’s strong liquidity continues to support its inorganic growth initiatives.
Other insurance brokers have also been boosting inorganic growth. Marsh & McLennan Agency LLC, a subsidiary of Marsh & McLennan Companies, Inc. (MMC), announced the acquisition of California-based NuWest Insurance Services Inc. Willis Group Holdings Public Limited Company (WSH) has proposed the takeover of SurePoint Reinsurance, along with the buyout of a range of Irish pension and financial advisory businesses from IFG Group plc. Validus Holdings, Ltd. (VR) has acquired Western World Insurance Group, Inc.
Currently, Arthur J. Gallagher has a Zacks Rank #3 (Hold).
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