ITASCA, Ill., Jan. 22 /PRNewswire-FirstCall/ -- Arthur J. Gallagher & Co.
(NYSE: AJG) announced today that it has signed a definitive agreement to
acquire all of the policy renewal rights from Liberty Mutual's middle-market
commercial property/casualty business located in their Midwest and Southeast
regions. As part of the agreement, Gallagher expects to hire approximately 75
Liberty Mutual producers in these regions.
Gallagher is also acquiring substantially all of the policy renewal rights
and hiring the national producer group from Wausau Signature Agency, Liberty
Mutual's commercial property/casualty and employee benefits insurance agency
headquartered in Wausau, Wisconsin.
When completed, it is expected that the transaction will add approximately
120 new insurance sales professionals to Gallagher's retail commercial
property/casualty brokerage operation under the direction of its President,
James S. Gault.
J. Patrick Gallagher, Jr., Chairman, President and CEO said, "This was an
extraordinary opportunity to hire industry-leading insurance professionals
that have a deep commitment to excellent client service and that fit
exceptionally well in the Gallagher culture. This strategic combination will
give us great growth potential, increase our client service capabilities, and
strengthen our middle-market presence. We look forward to working with our
newest associates, and we welcome them to our Gallagher family of
professionals."
The definitive agreement includes an initial payment in cash and stock of
approximately $44 million and additional payments in cash or stock (at
Gallagher's election) that is based on revenues generated in the two year
period beginning twelve months after closing. The maximum amount of the
additional payments is $120 million. This agreement is also subject to
customary closing conditions including regulatory approval under the Hart
Scott Rodino Antitrust Improvements Act of 1976. The transaction is expected
to close on or about March 1, 2009.
Arthur J. Gallagher & Co., an international insurance brokerage and risk
management services firm, is headquartered in Itasca, Illinois, has operations
in 15 countries and does business in more than 100 countries around the world
through a network of correspondent brokers and consultants. Gallagher is
traded on the New York Stock Exchange under the symbol AJG.
This press release may contain certain forward-looking statements relating
to future results. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements. These forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those expected, depending on a
variety of factors such as the failure to complete or adequately integrate the
assets and people acquired under the definitive agreement with Liberty,
changes in worldwide and national economic conditions, changes in premium
rates and in insurance markets generally and changes in securities and fixed
income markets as well as developments in the areas of tax legislation.
Please refer to our filings with the Securities and Exchange Commission,
including Item 1, "Business - Information Concerning Forward-Looking
Statements" and Item 1A, "Risk Factors", of Gallagher's Annual Report on Form
10-K for the fiscal year ended December 31, 2007 and Gallagher's Quarterly
Report on 10Q for the quarter ended September 30, 2008, for a more detailed
discussion of these factors.
SOURCE Arthur J. Gallagher & Co.