J. Powell Brown, Chief Executive Officer and President of Brown & Brown, Inc. today announced that Brown & Brown, Inc., has entered into an agreement to acquire the parent company of Arrowhead General Insurance Agency, Inc.for $395 million. Arrowhead is a national insurance program manager and one of the largest managing general agents (MGAs) in the property and casualty insurance industry. Brown & Brown has purchased the company from Spectrum Equity Investors, JMI Equity and a management equityholder group.
This transaction brings many exciting opportunities to Brown & Brown,” Mr. Brown said in a statement announcing the deal. “We believe Arrowhead has built a strong management team and an organization that enjoys an excellent reputation within the industry.”
The transaction is expected to close in January 2012 and is subject to customary closing conditions, including regulatory approval. The transaction will be a cash transaction and is not subject to financing conditions.