(Reuters) -Arthur J. Gallagher said on Tuesday it would acquire rival Woodruff Sawyer in a $1.2 billion deal, marking the insurance broker’s latest move to expand its business.
The deal will bolster Gallagher’s management liability, construction, real estate and cyber offerings and also expand its presence in the West Coast region.
Dealmaking activity within the insurance broker industry has ramped up in recent years, as companies look to beef up their presence in the middle-market segment.
Gallagher had also struck a $13.5 billion deal in December to buy insurance broker AssuredPartners.
The Insurer, a Reuters publication, exclusively reported last month Gallagher was close to a deal for Woodruff Sawyer.
Woodruff Sawyer had also held talks with insurance brokers WTW and Brown & Brown, the Insurer had reported.
San Francisco, California-based Woodruff Sawyer provides property and casualty insurance products, employee benefits offerings and risk management services with a focus on middle and large-market clients.
Founded by E.L. Woodruff in 1918, Woodruff Sawyer has grown into one of the largest insurance brokerages in the U.S. and is largely known as a Directors and Officers (D&O) specialist.
D&O insurance covers the company and its management, shielding them from claims arising from their decisions and actions.
Woodruff Sawyer’s more than 600 employees will work under Peter Doyle, head of Gallagher’s U.S. retail property and casualty brokerage operations.
Woodruff Sawyer’s pro forma revenue was about $268 million for the trailing 12 months ended December 31. The company operates 14 offices in the U.S. and one in the UK.
The deal is expected to close during the second quarter of 2025.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Krishna Chandra Eluri)
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