Gallagher strikes $660m M&A deal to ‘attract and retain’ talent
Global insurance brokerage Arthur J Gallagher has invested $660 million from its M&A war chest for the firm’s largest human resource benefits acquisition to date, in a move to “attract, engage and retain talent” to drive its future growth strategy.
The acquisition of the partnership interests of BCHR Holdings, L.P. (Buck) and its subsidiaries for a gross consideration of $660 million or approximately $585 million net of agreed seller funded expenses and net working capital expected to close during the first half of 2023, subject to customary regulatory approvals.
Gallagher expects to fund the transaction via free cash flow and short-term borrowings.
The transaction is estimated to be approximately 2% accretive to adjusted diluted earnings per share over the trailing twelve month period ended September 30, 2022, assuming expense synergies in line with its expectation.
Buck is a provider of retirement, HR and employee benefits consulting and administration services. With over 2,300 employees, including more than 220 credentialed actuaries, the organisation primarily serves customers throughout the US, Canada and the UK.
Besides expanding Gallagher’s value proposition within retirement, benefits & HR consulting, administration, and technology, the acquisition enhances and deepens the company’s broad suite of professional services including: defined benefits consulting, plan administration, defined contribution and executive benefit consulting, investment consulting, benefits strategy, compliance, employee engagement consulting and total rewards optimisation. It also offers potential cross-selling opportunities across current benefits and property & casualty clients.
“Providing a comprehensive suite of products and services that allows employers to attract, engage and retain talent is at the heart of Gallagher Benefit Services’ mission and our global Gallagher Better Works value proposition,” said J. Patrick Gallagher, Jr., chairman, president and CEO.
“Through the complementary strengths of Buck’s defined benefit offerings, investment consulting, digital employee engagement platform and international footprint, the acquisition will broaden, deepen and enhance our client offerings. I look forward to welcoming the 2,300 new colleagues joining us as part of this transaction to our growing Gallagher family of professionals.”
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