Posted on 13 May 2011
Arthur J. Gallagher & Co. today announced it has completed the acquisition of HLG Holdings, Ltd. ("Heath Lambert"), headquartered in London, England.
Established in 1877, Heath Lambert brokers nearly all lines of property & casualty and employee benefit insurance products through 1,200 professionals in 16 offices throughout the United Kingdom.
"This acquisition represents an important strategic move for our company," said J. Patrick Gallagher, Jr., Chairman, President and CEO of Arthur J. Gallagher & Co. "Since 1974, we've been in London primarily as a wholesale broker. Now, Heath Lambert offers us an excellent opportunity to become a large retail broker in one of the best insurance markets in the world. Their highly-skilled team shares our culture, and their complementary product and service capabilities are an excellent fit with our U.S. and expanding international retail operations. I'm extremely pleased to welcome all of the talented Heath Lambert associates to our Gallagher family of professionals."
"Gallagher is the perfect match for our employees and customers," said Adrian Colosso, CEO of Heath Lambert. "Gallagher's dedication to excellence complements Heath Lambert's strong, well-respected and customer-oriented retail operations. Together, we will continue to deliver outstanding insurance brokerage services to the U.K. market."
"Heath Lambert provides us with a solid platform to grow our broker ranks through targeted recruitments and additional mergers," said David Ross, CEO of Gallagher's London-based international brokerage operations. "Having a full-spectrum of products, services and expertise throughout the U.K. will make Gallagher a natural home for insurance professionals looking to grow their business."
Gallagher believes Heath Lambert will enhance its existing U.K. operations through:
- Expanded capabilities in fine art specie, real estate, employee benefits, major construction, entertainment, affinity relationships and public sector businesses;
- Significant expansion of Gallagher's U.K. benefits consultancy and advisory services;
- Increased access to a wide range of retail clients from large corporations to private individuals;
- An expanded U.K. branch network with the addition of Heath Lambert's 16 offices;
- Solid brand name recognition with the addition of Heath Lambert's more than 130 years of retail insurance experience and strong insurance market relationships;
- Depth of employee resources with more than 1,200 Heath Lambert employees providing unlimited opportunities for future leadership, performance and recruitment;
- An expanded multi-national client base throughout the U.K.; and
- Award-winning service. Heath Lambert received the 2010 Insurance Times-Corporate Insurance Buying Team of the Year; the 2010 British Insurance Awards-Commercial Lines Broker of the Year for the 2nd year; and in 2010 its employee benefit unit won Best Healthcare Trust Intermediary Award from Health Insurance magazine.
The transaction should generate approximately 97 million pounds Sterling ($158 million) in annualized revenue. During a 2-year integration period, it is estimated to break even in 2011 and contribute approximately 12 million pounds Sterling ($20 million) of EBITDAC in 2012. In 2013, it is estimated to contribute approximately 20 million pounds Sterling ($33 million) of EBITDAC.The net purchase price of 97 million pounds Sterling ($158 million) was funded entirely with cash.
Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 16 countries and does business in more than 110 countries around the world through a network of correspondent brokers and consultants.