Arthur J. Gallagher & Co. has acquired insurance broker Bollinger Inc. for about $276.5 million in cash and stock, a deal that expands the company's presence in the Northeast.Gallagher is purchasing the company, which has offices in New Jersey, New York, Pennsylvania and Connecticut, for about $172 million in cash plus the issuance of 3.2 million Gallagher shares, valued at about $140 million, less the value of tax assets acquired.
Bollinger's business spans retail property and casualty insurance placement, wholesale brokerage and program management and employee benefits brokerage and consultancy. Gallagher, an insurance broker and risk management services firm, said the acquisition is expected to generate more than $100 million in annualized revenue across these three operating units.
Stronger commissions and fees have driven Gallagher's top-line growth in recent quarters, and its profit has also largely improved.
Last month, the company reported its second-quarter profit rose 30% as it continued to book strong growth in commissions and fees.