Arthur J Gallagher, an Illinois-based insurance brokerage and risk management services firm, has acquired the Giles Group of Companies (Giles) of London, for an undisclosed sum.

Giles operates as an independent retail broker with operations in England, Scotland, Wales, Northern Ireland, Isle of Man and the Channel Islands.

The acquisition will enable Gallagher to boost its client base in the UK, expand underwriting footprint through current underwriting business and enhance retail distribution from broker networks, create cross-selling opportunities, and generate long-term operational efficiencies.

Under the terms of the agreement, which was initially inked in September, Giles CEO McManus would join the AJG International Executive Committee that is led by Arthur J Gallagher International CEO David Ross.

Commenting on the deal, Arthur J Gallagher chairman, president and CEO J Patrick Gallagher Jr said they continue to look for outstanding international partners that have a similar growth strategy and operating structure, and this is what they found in Giles.

"Most importantly, Giles has a team-based sales culture which matches ours. With our combined resources, we will be able to offer new and current clients additional and/or expanded sales and service capabilities," Gallagher Jr added.

"Together, we can significantly expand our operations in England and Scotland as well as add operating platforms in Northern Ireland, Wales, Isle of Man and the Channel Islands."

Arthur J Gallagher & Co manages operations across 23 nations and delivers client-service capabilities in more than 140 countries throughout the world using a network of correspondent brokers and consultants.