The definitive agreement includes an initial payment in cash
Arthur J. Gallagher, an insurance brokerage and risk management services firm, has signed a definitive agreement to acquire all of the policy renewal rights from Liberty Mutual’s middle-market commercial property and casualty business located in its Midwest and Southeast regions.
As part of the agreement, Gallagher expects to hire approximately 75 Liberty Mutual producers in these regions. Gallagher is also acquiring substantially all of the policy renewal rights and hiring the national producer group from Wausau Signature Agency, Liberty Mutual’s commercial property and casualty, and employee benefits insurance agency headquartered in Wausau, Wisconsin.
When completed, it is expected that the transaction will add approximately 120 new insurance sales professionals to Gallagher’s retail commercial property and casualty brokerage operation under the direction of its president, James Gault.
The definitive agreement includes an initial payment in cash and stock of approximately $44 million and additional payments in cash or stock that is based on revenues generated in the two-year period beginning 12 months after closing. The maximum amount of the additional payments is $120 million.
Patrick Gallagher, Jr., chairman, president and CEO of Arthur J Gallagher, said: This was an extraordinary opportunity to hire industry-leading insurance professionals that have a deep commitment to excellent client service and that fit exceptionally well in the Gallagher culture.