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Gallagher Bassett Acquires TPA and Managed-Care Business of GAB Robins

Source: Bestwire


Posted on 06 Oct 2010

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Gallagher Bassett Services Inc., a unit of Arthur J. Gallagher & Co., acquired the third-party administration and managed-care services of GAB Robins North America Inc. and its subsidiary MedInsights, a move expected to add $45 million to $50 million in annualized revenue. Terms of the acquisition weren’t disclosed.

More than 420 GAB Robins employees, including Michael Repoli, chief executive officer of GAB Robins' TPA division, will join Gallagher Bassett.

"This sale of the TPA business allows GAB to focus on its core strength and core business" of loss-adjusting services, said GAB Robins spokesman Harry Baumgartner. He said GAB Robins interviewed several acquisition suitors and called Gallagher Bassett "a perfect fit."

"They're a very top-notch organization, highly rated by customers," Baumgartner said.

Gallagher Bassett President Scott R. Hudson said the acquisition allows Gallagher to expand its customer base and add staff. "Our motivation in making this acquisition was not to reduce adjuster headcount or increase workloads, but to add GAB and MedInsights' clients and professionals to our own, to grow our franchise and secure our leadership position in the industry," Hudson said in an e-mail.

In August, Arthur J. Gallagher acquired Benefits Unlimited Inc. of Houston, which offers employee benefits consulting and brokerage services, the latest in a string of acquisitions for Gallagher this year.

GAB Robins, based in Parsippany, N.J., will continue to operate its North American loss-adjusting services business, which focuses on property/casualty loss-adjusting services. Gallagher Bassett offers risk-management services, including claims management, information management, and medical-cost containment. Arthur J. Gallagher, with its headquarters in Itasca, Ill., is the fifth-largest broker in the world based on revenue of $1.7 billion, according to the Best's Review 2009 ranking of global brokers.



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