Arthur J. Gallagher & Co., has acquired London-based Oval Group of Cos., a brokerage and financial services firm, for £199 million ($331.1 million) in cash, Itasca, Ill.-based Gallagher said Tuesday.
Oval operates out of 24 offices throughout the U.K. and has annualized revenue of over £80 million ($133.1 million), according to Gallagher. Oval's retail business generates approximately £68 million ($113.1 million) in annualized revenues from 19 offices while Oval's benefits, wealth management and healthcare operations generates approximately £12 million ($20.0 million) in annualized revenues, said Gallagher in a statement.
“Oval will significantly expand our retail distribution and firmly positions Gallagher as a top three U.K. retail commercial broker operating from 70 locations. Our combined operations will also make us the largest retail broker in several key U.K. locations,” said Gallagher Chairman, President and CEO J. Patrick Gallagher, Jr., in the statement.
Peter Blanc, Oval CEO, will lead Gallagher's combined U.K. retail division, and Oval's benefits and wealth management business will become part of Gallagher's U.K.-based benefit and consulting specialist operations, led by Tim Johnson, the statement said. About 1,000 Oval associates will also remain with the combined entity, said the statement.
The acquisition marks Gallagher's second major purchase in the U.K. market in little more than six months. Last September, Gallagher spent about $362 million to acquire the London-based Giles Group of Cos.