Arthur J. Gallagher & Co. Acquires RMA General Limited and Dyste Williams
Arthur J. Gallagher & Co. yesterday announced the acquisition of New Zealand-based RMA General Limited (RMA) and its associated insurance broking businesses. Terms of the transaction were not disclosed.
RMA provides commercial and personal insurance products as well as tailored life and health solutions to clients throughout New Zealand. Josh Adams and his team will operate under the direction of Carl O’Shea, head of Gallagher’s New Zealand retail brokerage operations.
“RMA has a client-focused culture like our own and will expand our brokerage capabilities in New Zealand,” said J. Patrick Gallagher, Jr., Chairman and CEO. “I am delighted to welcome Josh and his associates to our growing, global team.”
Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Dyste Williams
Arthur J. Gallagher & Co. yesterday also announced the acquisition of Minneapolis, Minnesota-based Dyste Williams. Terms of the transaction were not disclosed.
Dyste Williams is a retail insurance agency offering a full suite of commercial lines, employee benefits and personal lines services to clients in the Upper Midwest. Ted Dyste, Nels Dyste and their team will remain in their current location as part of Gallagher Agency Alliance under the direction of Jen Tadin, head of Gallagher Select, its U.S. property/casualty operations for small businesses and personal insurance.
“Dyste Williams is a highly regarded agency with a long history of client service that will further deepen our small business capabilities,” said J. Patrick Gallagher, Jr., Chairman and CEO. “I am delighted to welcome Ted, Nels and their associates to Gallagher.”
Gallagher Agency Alliance is a merger & acquisitions model partnering with agencies that specialize in small business property/casualty insurance and employee benefits.
Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Arthur J. Gallagher & Co. Acquires Agilis Partners LLC
Arthur J. Gallagher & Co. yesterday announced the acquisition of Waltham, Massachusetts-based Agilis Partners LLC (Agilis). Terms of the transaction were not disclosed.
Agilis is an investment and retirement plan consulting firm that offers its institutional clients tailored risk management services with offices in greater Boston, New York and Denver. Tom Cassara and his team will remain in their current locations under the direction of Jeff Leonard, Gallagher’s Global Financial & Retirement Services Business leader.
“Agilis’s strong record of growth, client-focused culture and consultative approach to solving problems will enhance our retirement plan and investment consulting capabilities,” said J. Patrick Gallagher, Jr., Chairman and CEO. “I am very pleased to welcome Tom and his associates to Gallagher.”
Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Cadence Bank Announces Agreement to Sell the Insurance Operations of Cadence Insurance to Arthur J. Gallagher & Co.
Cadence Bank (“Cadence” or the “Company”) (NYSE: CADE) today announced that it entered into a definitive agreement to sell its insurance operations, Cadence Insurance, Inc., to Arthur J. Gallagher & Co. (“Gallagher”) (NYSE: AJG) for $904 million in cash1.
Key Highlights2:
– Sale of Cadence Insurance, Inc., the second largest bank-affiliated insurance brokerage in the nation as ranked by Business Insurance, will allow Cadence to capitalize on the valuation premium and reinvest the capital into its strategic transformation efforts and growing its core banking franchise.- We believe this transaction is extremely attractive for a bank-owned brokerage of 5.4x LTM revenue.- Transaction is financially compelling with estimated 24% tangible book value per share3 accretion and 160 bps improvement in CET1.- On an after-tax basis, the immediate net capital increase is expected to be approximately $620 million and net cash proceeds are estimated at $650 million. The significant capital creation bolsters the Company’s balance sheet flexibility and profitability profile, while providing flexibility for capital redeployment to drive shareholder value.- The sale is expected to be slightly positive to earnings per share through the use of cash proceeds to reduce wholesale borrowings. Further net income and earnings per share enhancements are anticipated as generated capital is deployed through strategic and franchise growth initiatives over time.
“We have always liked the insurance business,” said Dan Rollins, chairman & CEO of Cadence Bank.
“Over the past 24 years, under exceptional leadership, the team has grown Cadence Insurance into the second largest bank-affiliated insurance brokerage in the country. The sale will allow us to focus on what we do best – building strong, long-lasting banking relationships, while also continuing to realize our long-term strategy. I have enjoyed working with the Cadence Insurance team immensely and have profound respect for what they do, and how well they do it. On behalf of all of us at Cadence, we will miss them.”
Rollins continued: “Gallagher is well regarded for its culture, ethics, service and responsibility to its people, and I am fully confident our customers and teammates can expect the same level of quality service and commitment to being a great place to work they experience today.”
Markham McKnight, CEO of Cadence Insurance, added, “Cadence Bank has been a fantastic partner of ours for the past 24 years, supporting our growth and evolution. During this collaborative process with Cadence Bank, we both determined that Gallagher is the best partner for us. Our team is what makes us who we are, and Gallagher recognized from the first conversation the talent of our team and its commitment to our clients and communities. We are energized about our future with Gallagher and what our team will be enabled to deliver to our clients.”
Cadence anticipates the transaction, which is subject to standard closing conditions, will close in the fourth quarter of 2023. Cadence Insurance executive leadership, management and employees will join Gallagher following the sale.
Cadence Insurance is an insurance brokerage business that specializes in commercial and personal property & casualty, employee benefits, business solutions, and risk management services. Cadence Insurance manages 30 offices in eight states across the Southeast and has consistently been recognized as a Best Places to Work by Business Insurance, Baton Rouge Business Report and Mississippi Business Journal.
Morgan Stanley & Co. LLC, MarshBerry, and Ernst & Young served as financial advisors and Hodgson Russ LLP provided legal counsel to Cadence.
1
Subject to customary purchase price adjustments
2
All financial metrics based on financial information as of September 30, 2023
3
Non-GAAP financial measure
Arthur J. Gallagher & Co. Acquires Air-Sur of Florida
Arthur J. Gallagher & Co. today announced the acquisition of Ormond Beach, Fla.-based Air-Sur, Inc. Terms of the transaction were not disclosed.
Founded in 1976, Air-Sur is a retail insurance broker serving clients in the aviation and aerospace industry. Its clients include air transport operators, service companies, component manufacturers, engine/airframe overhaul and modification centers, as well as general aviation operators. Thomas K. Coughlin and his associates will continue to operate from their current location under the direction of Scott Firestone, head of Gallagher’s Southwest region retail property/casualty brokerage operations.
“The Air-Sur team has an outstanding market reputation, and deepens and expands our aerospace capabilities across Florida and the Southeast,” said J. Patrick Gallagher, Jr., Chairman, President and CEO. “We are delighted to welcome Tom and his associates to our growing, global team.”
Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. The company has operations in 49 countries and offers client service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.