Summary
Arthur J. Gallagher & Co. (AJG) announced a significant strategic acquisition through its subsidiary, Friary Intermediate Limited. On September 4, 2013, AJG entered into a Share Purchase Agreement to acquire Giles Insurance Broking Group ('Giles') for approximately £233 million in net cash consideration. This acquisition positions AJG to become a major player in the UK retail insurance brokerage market, acquiring the fifth largest independent retail insurance broker in the United Kingdom with 43 offices and over 1,100 employees. The transaction is subject to regulatory approval and includes customary warranties and covenants. A portion of the purchase price, approximately £3 million, will be held in escrow to secure these warranty obligations. AJG has also secured an insurance policy to cover general and tax warranties, mitigating potential risks associated with the transaction. This move underscores AJG's commitment to expanding its global footprint and market share within the insurance brokerage sector.
Key Highlights
- 1Arthur J. Gallagher & Co. (AJG) is acquiring Giles Insurance Broking Group ('Giles') for approximately £233 million in net cash.
- 2The acquisition is being made through AJG's subsidiary, Friary Intermediate Limited.
- 3Giles is the fifth largest independent retail insurance broker in the United Kingdom.
- 4Giles operates 43 offices across the UK and employs over 1,100 individuals.
- 5The transaction is subject to regulatory approval.
- 6A £3 million portion of the consideration will be held in escrow to secure warranty obligations.
- 7AJG has purchased an insurance policy to cover general and tax warranties, mitigating risk.