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Gallagher buys London-based Giles Group for $362 million

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Gallagher buys London-based Giles Group for $362 million

In its second major transaction in a month, Arthur J. Gallagher & Co. said Wednesday that it plans to acquire London-based Giles Group of Cos. for £233 million ($362.1 million) in cash.

The U.K. retail brokerage has more than 1,100 employees in 43 offices.

By acquiring Giles, Gallagher expands its client base in the U.K. middle-market and gains offices in regions with little overlap from Gallagher's existing U.K. operations, Gallagher Chairman, President and CEO J. Patrick Gallagher Jr. said in a statement.

“We continue to look for outstanding international partners that have a similar growth strategy and operating structure and this is what we found in Giles,” Mr. Gallagher said in the statement. “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.”

In addition to its retail unit, Giles has an underwriting unit, consisting of managing general agents that provide products for internal and external brokers, as well as wholesale and personal lines business units.

Once combined with Gallagher, the operation will have approximately 70 offices and 3,100 staff in the United Kingdom.

The companies also said that Giles' CEO Brendan McManus will join the AJG international executive committee led by David Ross, CEO of Arthur J. Gallagher International.

“Our team has been really impressed by the Arthur J. Gallagher culture and the level of engagement between the senior teams,” Mr. McManus said in the statement. “It's a great opportunity to combine two high-performing businesses and deliver an even better proposition to our clients.”

The $370 million deal is still subject to regulatory approval and is expected to close in October, Gallagher said in the statement.

The deal was Gallagher's second major purchase in a month.

In August, Gallagher acquired New Jersey-based brokerage Bollinger Inc. for $276.5 million.