Sept. 4, 2013
/PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced that it has signed an agreement to acquire the Giles Group of Companies (Giles) headquartered in
. The transaction is subject to regulatory approval and is expected to close
Giles is an independent retail broker in the
with over 1,100 employees operating out of 43 offices in
Isle of Man
"We continue to look for outstanding international partners that have a similar growth strategy and operating structure, and this is what we found in Giles. Most importantly, Giles has a team-based sales culture which matches ours. With our combined resources, we will be able to offer new and current clients additional and/or expanded sales and service capabilities," said
J. Patrick Gallagher, Jr.
, Chairman, President and CEO. "Together, we can significantly expand our operations in
as well as add operating platforms in
Isle of Man
and the Channel Islands. We are proud that this outstanding team of professionals will be joining the Gallagher family."
, CEO of Giles, said: "Our team has been really impressed by the Arthur J. Gallagher culture and the level of engagement between the senior teams. It's a great opportunity to combine two high performing businesses and deliver an even better proposition to our clients."
Together Gallagher and Giles will continue their common strategies of growing organically and through mergers and acquisitions, improving productivity and enhancing service quality, and maintaining a unique sales culture. Benefits of the acquisition are expected to include:
The Combined Operation
- Significantly expanding Gallagher's client base in the U.K middle-market;
- Adding significant growth in Gallagher's underwriting footprint through current underwriting business and increased retail distribution opportunities through broker networks;
- Cross-selling opportunities across the combined network;
- Complementing and expanding specialized niche practice groups;
- Combining strong production talent that builds on Gallagher's successful sales team platform;
- Driving longer-term operational efficiencies through a consolidated platform;
- Little overlap with Gallagher's current locations.
The combined operation will have approximately 70 offices and 3,100 staff in the U.K. Giles' CEO
will join the AJG International Executive Committee led by
, CEO of Arthur J. Gallagher International.
Giles' retail commercial clients and networks are expected to generate over £57 million in annualized revenues in 40 offices. They will augment Arthur J. Gallagher's representation within the
and will give Gallagher the scale needed in larger regional markets.
As part of this transaction this will include two UK broker networks, Westinsure and Compass Broker Services, with a combined membership of over 200 network brokers. These two networks offer a strong national alliance for smaller brokers and bring a new proposition to Arthur J. Gallagher.