ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co., a global insurance brokerage and risk management services firm, has entered into a definitive agreement to acquire Woodruff Sawyer, a San Francisco-based insurance broker. The transaction, valued at $1.2 billion, is expected to close in the second quarter of 2025, pending regulatory approvals.
Woodruff Sawyer specializes in commercial property/casualty products, employee benefits solutions, and risk management services, focusing on middle and large market clients. With a presence across 14 U.S. offices and one in the UK, the company brings expertise in sectors such as management liability, construction, and real estate. Post-acquisition, Woodruff Sawyer’s team will join Gallagher’s U.S. retail property/casualty brokerage operations, led by Peter Doyle. The acquisition aligns with AJG’s growth trajectory, which has delivered a 14.31% revenue increase over the last twelve months and maintains strong financial health, as indicated by InvestingPro’s comprehensive analysis.
J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co., expressed admiration for Woodruff Sawyer’s industry reputation, niche expertise, and client-focused culture. He anticipates that the acquisition will significantly enhance client offerings and expand the company’s capabilities.
Andy Barrengos, Chairman and CEO of Woodruff Sawyer, echoed the sentiment, highlighting the shared commitment to employees and a culture of integrity, trust, and excellence. He looks forward to leveraging the combined expertise and Gallagher’s global capabilities to better support clients.
Financially, Woodruff Sawyer reported pro forma revenues and EBITDAC (earnings before interest, taxes, depreciation, amortization, and change in estimated acquisition earnout payables) of approximately $268 million and $88 million, respectively, for the trailing 12 months ended December 31, 2024. The acquisition includes expected integration costs and non-cash management retention expenses totaling $150 million over three years. For deeper insights into AJG’s financial metrics, valuation, and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.
This acquisition announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Factors that could cause actual results to differ include challenges integrating the acquired operations into Gallagher, the possibility that anticipated benefits and synergies are not realized, regulatory approval delays, and the risk of unexpected costs. Arthur J. Gallagher & Co. is listed on the New York Stock Exchange under the ticker (NYSE:AJG).
In other recent news, Arthur J. Gallagher & Co. has been actively expanding its global presence through a series of acquisitions. The company acquired New Zealand-based RMA General Limited, enhancing its brokerage capabilities in the region. Additionally, Gallagher expanded its footprint in the Upper Midwest by acquiring Dyste Williams, a Minneapolis-based retail insurance agency. This acquisition is expected to deepen Gallagher’s small business capabilities in the area. In Brazil, Gallagher acquired the Case Group, a brokerage firm specializing in employee and health benefits, which is anticipated to bolster its services in Latin America. Furthermore, the company strengthened its retirement plan and investment consulting services with the acquisition of Agilis Partners LLC, based in Massachusetts. Gallagher also enhanced its retail brokerage capabilities in central New York by acquiring Dominick Falcone Agency, Inc. and Falcone Associates, Inc. These strategic acquisitions are part of Gallagher’s ongoing efforts to expand its service offerings and market presence internationally.
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