Gallagher to pay more than half a billion for latest acquisition in US
Global re/insurance broker Arthur J Gallagher has acquired a commercial property/casualty and personal lines insurance provider in the Northeast US for more than half a billion dollars, to “significantly” expand its capabilities in the region.
Gallagher has signed a definitive agreement to acquire Natick, Massachusetts-based Eastern Insurance Group, LLC (Eastern Insurance), a subsidiary of Eastern Bank, for consideration of $510 million net of agreed seller funded expenses.
The transaction is subject to regulatory approval and is expected to close during the fourth quarter of 2023.
Eastern Insurance pro forma revenues and EBITDAC (including minimal expected synergies) for the trailing 12 months ended June 30, 2023 were approximately $104 million and $37 million, respectively.
Eastern Insurance offers comprehensive commercial property/casualty and personal lines products as well as employee benefits consulting to clients throughout the Northeast US. Tim Lodge and his team will remain in their current location under the direction of Patrick Kennedy, head of Gallagher's Northeast region retail property/casualty brokerage operations, and John Neumaier, head of Gallagher's East region employee benefits consulting and brokerage operations.
"Eastern Insurance is highly regarded throughout New England, where they have established a strong culture and demonstrated steady organic growth. Their extensive niche expertise in retail, construction, real estate, hospitality and benefits will enhance the value we deliver to our clients and significantly expand our capabilities in the region," said J. Patrick Gallagher, Jr., chairman, president and CEO. "I look forward to welcoming Tim and the Eastern Insurance team to our growing Gallagher family of professionals."
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