Gallagher to acquire AssuredPartners
Gallagher has signed a definitive agreement to acquire insurance broker AssuredPartners.
Under the agreement, Gallagher will acquire the stock of AssuredPartners’ parent company from GTCR and funds advised by Apax Partners LLP for gross consideration of $13.45 billion, representing a pro forma EBITDAC multiple of 14.3x. After giving effect to an estimated $1 billion deferred tax asset, net consideration is approximately $12.45 billion. The net consideration EBITDAC multiple is 11.3x after giving effect to the deferred tax asset and estimated synergies.
Gallagher expects to finance the transaction using a combination of long-term debt, short-term borrowings, free cash and common equity. 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.
Gallagher also expects to recognize 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.
Founded in 2011 by private equity firm GTCR, in partnership with Jim Henderson, AssuredPartners’ 10,900 colleagues serve a wide range of customers including commercial, public entity and individuals, through approximately 400 offices located across the US, the UK and Ireland. Pro forma revenues and EBITDAC for the trailing 12 months ended September 30, 2024 were approximately $2.9 billion and $938 million, respectively.
The transaction is subject to customary regulatory approvals and is expected to close during the first quarter of 2025.
“We have held in high regard the fast-growing AssuredPartners franchise since its founding in 2011. AssuredPartners’ entrepreneurial spirit, broad U.S. 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.” – J. Patrick Gallagher, Jr., Chairman and CEO.
“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.” – Randy Larsen, CEO of AssuredPartners.
“When we started AssuredPartners, I could never have imagined how far we would come. What started as a small team with a big vision has grown into an extraordinary organization, built on a foundation dedicated to our clients, our culture, and our people. I have watched the Gallagher culture thrive throughout my career. With Gallagher’s mutual client first mindset and underlying entrepreneurial spirit, I believe our employees, our clients, and our trading partners will be well served by putting these two amazing companies together.” – Jim Henderson, Chairman of AssuredPartners.
