AJG acquires Wesfarmers operations
Arthur J Gallagher has signed an agreement to acquire the Wesfarmers insurance brokerage operations.
The Wesfarmers Insurance Brokerage operations generated A$331.1 million ($306 million) in revenue in the year ended June 30, 2013 and has approximately 1,700 employees operating out of more than 50 offices across Australia, New Zealand and the UK.
The transaction, which includes the OAMPS businesses in Australia and the United Kingdom, Crombie Lockwood in New Zealand and the associated premium funding operations, is subject to regulatory approval and is expected to close during the second or third quarter of 2014.
"This acquisition represents an important strategic step for our company by significantly expanding our presence in Australia and New Zealand. Together we will have a tremendous platform for growth as we expand throughout Australasia," said J Patrick Gallagher, chairman, president and chief executive officer.
"Our combined operations will become one of the largest insurance brokers in Australia and New Zealand. Their focus on middle-market clients aligns well with our global client base and will provide us opportunities to bring our full range of services to their existing clients and prospects. We are proud that this outstanding team of professionals will be joining the Gallagher family."
Steve Lockwood, executive chairman of the Wesfarmers insurance brokerage operations, said: "This is genuinely exciting for our people and clients to join with an organisation that is like-minded in culture and client focus. Our combined operations and scale will be a great benefit to our clients."
Lockwood will lead Gallagher's property/casualty insurance brokerage operations in Australasia and will report directly to Tom Gallagher, head of Gallagher's international operations.
