US insurance brokerage Arthur J. Gallagher (Gallagher) has agreed to acquire domestic peer Woodruff Sawyer for $1.2bn.
Woodruff Sawyer offers commercial property and casualty (P&C) products, employee benefits solutions and risk management services. The San Francisco-based business primarily caters to middle and large market clients.
Go deeper with GlobalData
With 14 offices in the US and one in the UK, the company has established expertise in management liability, construction and real estate.
Woodruff Sawyer’s 600-member team, led by CEO Andy Barrengos, will now join Gallagher.
They will work under the leadership of Peter Doyle, who heads Gallagher’s US retail P&C brokerage operations.
Barrengos said: “We are thrilled to join Gallagher, who shares our deep commitment to employees and has a culture defined by integrity, trust and excellence.
“We look forward to leveraging our complementary expertise and Gallagher’s substantial global capabilities to provide outstanding support for our clients.”
Woodruff Sawyer’s pro forma revenues and EBITDAC (earnings before interest, taxes, depreciation, amortisation and coronavirus), including anticipated synergies, for the trailing 12 months ending 31 December 2024, stand at $268m and $88m, respectively.
In the coming three years, this acquisition is projected to incur integration and non-cash management retention costs of $150m.
This deal is scheduled for completion in the second quarter of 2025 (Q2 2025), contingent on regulatory clearance.
Gallagher chairman and CEO J. Patrick Gallagher Jr. said: “Woodruff Sawyer has an outstanding reputation in our industry, and we have long admired their niche expertise and client-focused culture.
“Our complementary strengths will enhance the value we deliver to our clients and significantly expand our capabilities.”
In December last year, Gallagher agreed to purchase insurance broker AssuredPartners for $13.5bn. Like Woodruff Sawyer, AssuredPartners has a middle-market focus.
