Arthur J. Gallagher & Co. has agreed to acquire specialist UK insurance broker Stackhouse Poland Group from Synova Capital for an undisclosed price.
Established in 1974, Stackhouse Poland has more than £55m in annualized revenues. The company has a workforce of over 500 employees and operates from a network of 23 offices in the UK.
Its insurance divisions specialize in a range of specialist insurance sectors that include high-net-worth private clients, real estate, commercial, healthcare and others.
Synova Capital said that the sale of Stackhouse Poland will deliver it 5.6x invested capital along with an IRR of 52%.
The private equity company said that since its investment, Stackhouse Poland has grown its revenues threefold to £55m, placing £300m of gross written premium (GWP) into the market, via a combination of organic growth and targeted acquisitions.
Stackhouse Poland executive chairman Jeremy Cary said: “For the last 17 years, initially with business partner James Agnew and more recently in wider partnership with Tim Johnson & Synova, we have resolutely focused on building a private client and specialist commercial broking business, where organic growth has been equally important as growth by acquisition.
“Stackhouse Poland’s success has been a consequence of the fantastic clients we serve and the equally fantastic people we employ. The Gallagher business is infused with a similar culture, where it is all about clients and colleagues, and so I am happy to be passing the baton to a great home.”
Last week, the specialist UK insurance broker acquired specialist medical indemnity broking firm Foley Healthcare, which trades under the name Bespoke Medical Indemnity.
Arthur J. Gallagher president and CEO Patrick Gallagher, Jr. said: “Having begun life as a small, general practice broker, Stackhouse Poland has since grown through a well-managed blend of organic growth and targeted acquisitions, just like Gallagher.
“With its suite of specialisms and first-class reputation among clients in the UK marketplace, it will make an outstanding addition to our global team.”
The transaction, which will be subject to regulatory approval, is anticipated to be completed in the first quarter of this year.
Headquartered in the US, Arthur J. Gallagher is a global insurance brokerage, risk management and consulting services company.
Last month, the firm acquired Mississippi-based Pointer Insurance Agency, a provider of property/casualty coverages to businesses and individuals in Mississippi and Tennessee.