Arthur J. Gallagher To Buy AssuredPartners For Gross Consideration Of $13.45 Bln

Arthur J. Gallagher

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Kaufen / Verkaufen

(RTTNews) - Arthur J. Gallagher & Co. (AJG), an insurance company, said on Monday that it has signed a deal to acquire the stock of AssuredPartners'' parent company from GTCR and funds advised by Apax Partners LLP for gross consideration of $13.45 billion.

Following an estimated $1 billion deferred tax asset, net consideration will be around $12.45 billion. 

The company aims to finance the transaction, to be closed in the first quarter of 2025, using a combination of long-term debt, short-term borrowings, free cash, and common equity. 

The company noted that the acquisition will be financially attractive, with estimated double-digit adjusted earnings per share accretion, including the impact of synergies.

Post-transaction, the acquirer expects to recognize synergies of around $160 million and integration costs of approximately $500 million, including $200 million of non-cash retention awards, over the next 3 years.

Patrick Gallagher, Jr., CEO of AJG, said: "AssuredPartners' entrepreneurial spirit, broad U.S. footprint, and middle-market focus make them an ideal merger partner for Gallagher."