Gallagher ending string of large foreign broker acquisitions: CEO
Posted On: May. 20, 2014 12:00 AM CST
Arthur J. Gallagher & Co. has “kind of cleaned the cupboard” in terms of large-scale foreign acquisitions, according to Gallagher Chairman, President and CEO J. Patrick Gallagher Jr.
Mr. Gallagher made his comment during a Tuesday conference call concerning Gallagher's agreement to acquire Toronto-based Noraxis Capital Corp. for about $388 million.
The acquisition, which was announced Monday and is subject to regulatory approval, will make Gallagher one of the five largest brokers in Canada.
The deal was the latest in series of acquisitions in Australia, New Zealand and the United Kingdom during the last year, the largest of which was an agreement announced in April to buy the insurance brokerage units of Australia's Wesfarmers Ltd. conglomerate for about $938 million.
“We think we've done a really good job of spreading our wings,” said Mr. Gallagher during Tuesday's call. But he said the company had pretty much “cleaned the cupboard” of attractive potential large international acquisitions.
He said that the large acquisitions in the English-speaking world have created platforms that will make the Itasca, Illinois-based brokerage more attractive to smaller brokerages as potential merger partner.