Summary
Arthur J. Gallagher & Co. (AJG) has filed a Form 8-K to report the completion of its acquisition of certain insurance brokerage businesses from Wesfarmers Insurance Investments Pty Ltd and OAMPS Ltd in Australia, New Zealand, and the United Kingdom. This significant international expansion was finalized on June 16, 2014, following an amended and restated Share Sale Agreement executed on June 15, 2014. The acquisition's purchase price was increased by A$10 million to A$1.02 billion, paid in cash. The funding for this substantial transaction was secured through a combination of equity offerings, existing cash reserves, and proceeds from the company's revolving credit facility. Investors should note that the final purchase price is subject to a net current asset adjustment as per the agreement. This deal marks a key strategic move for AJG, expanding its global footprint in the insurance brokerage sector.
Key Highlights
- 1Completion of the acquisition of insurance brokerage businesses from Wesfarmers Insurance Investments Pty Ltd and OAMPS Ltd in Australia, New Zealand, and the United Kingdom.
- 2The acquisition closed on June 16, 2014.
- 3The Share Sale Agreement was amended and restated on June 15, 2014, to adjust terms.
- 4The purchase price was increased by A$10,000,000, bringing the total cash consideration to A$1.02 billion.
- 5The purchase price is subject to a net current asset adjustment.
- 6Funding for the acquisition was sourced from equity offerings, cash on hand, and a revolving credit facility.
- 7This represents a significant international expansion for Arthur J. Gallagher & Co.