Gallagher Faces Further Scrutiny in AssuredPartners Acquisition
Arthur J. Gallagher & Co. is navigating further regulatory hurdles in its planned acquisition of AssuredPartners Inc. The insurance brokerage firm announced it has received a second request for information concerning the deal, as part of the Hart-Scott-Rodino (HSR) review process.
This second request, a standard element in transactions of this nature according to Gallagher, extends the waiting period under the HSR Act. The waiting period will now continue for 30 days after Gallagher has substantially complied with the request. This timeframe may be adjusted by the antitrust agency, or extended voluntarily by the involved parties.
The company stated its commitment to responding to the request and anticipates closing the acquisition in the second half of the year.
Originally announced in December 2024, the acquisition will see Gallagher acquire AssuredPartners’ parent company from GTCR and funds advised by Apax Partners. The financial considerations include about $12.45 billion, accounting for a $1 billion deferred tax asset. This represents an 11.3x multiple of EBITDAC after accounting for synergies.
Gallagher plans to finance the transaction through a combination of long-term debt, short-term borrowings, free cash, and common equity, with a commitment to maintaining its investment-grade debt rating.
J. Patrick Gallagher Jr., Chairman and CEO of Gallagher, described AssuredPartners as “an ideal merger partner for Gallagher.” He cited the firm’s “entrepreneurial spirit, broad US footprint, and middle-market focus” as key factors. Gallagher also highlighted potential synergies leveraging the firm’s industry expertise, data analytics, and specialty products.
Founded in 2011, AssuredPartners is the 11th largest insurance broker in the U.S., with approximately 400 offices across the U.S., the UK, and Ireland.
Earlier this month, Gallagher also finalized the acquisition of Woodruff Sawyer for $1.2 billion. The win over competitors WTW and Brown & Brown underscores Gallagher’s aggressive growth strategy. The Woodruff Sawyer acquisition, valued at approximately 4.5 times revenue and 13.6 times EBITDAC, is in line with comparable transactions in the brokerage sector. This acquisition will bolster Gallagher’s presence on the West Coast and extend its capacity to service specialized industries.
