Arthur J Gallagher, an Illinois-based insurance brokerage and risk management services firm, has signed a deal to purchase the Giles Group of Companies (Giles) of London for an undisclosed amount.
Giles is an independent retail broker with operations in England, Scotland, Wales, Northern Ireland, Isle of Man and the Channel Islands.
The acquisition will allow Gallagher to increase its client base in the UK, increase underwriting footprint through current underwriting business and increased retail distribution from broker networks, create cross-selling opportunities, and generate long-term operational efficiencies.
Arthur J Gallagher chairman, president and CEO J Patrick Gallagher Jr said they continue to look for outstanding international partners that have a similar growth strategy and operating structure, and this is what they found in Giles.
"Most importantly, Giles has a team-based sales culture which matches ours. With our combined resources, we will be able to offer new and current clients additional and/or expanded sales and service capabilities," Gallagher Jr added.
"Together, we can significantly expand our operations in England and Scotland as well as add operating platforms in Northern Ireland, Wales, Isle of Man and the Channel Islands."
Giles CEO Brendan McManus said their team has been really impressed by the Arthur J Gallagher culture and the level of engagement between the senior teams.
"It's a great opportunity to combine two high performing businesses and deliver an even better proposition to our clients," McManus added.
Post acquisition, which is subject to regulatory approval and expected to close in October 2013, McManus will join the AJG International Executive Committee that is led by Arthur J Gallagher International CEO David Ross.