In an effort to expand its international operations, Arthur J. Gallagher (NYSE:AJG) has signed a definitive agreement to acquire London-based insurance firm Giles Group for an estimated $363.6 million, Gallagher announced today.
Gallagher Chairman, President, and CEO J. Patrick Gallagher was quoted in the company press release as saying, "With our combined resources, we will be able to offer new and current clients additional and/or expanded sales and service capabilities."
Giles employs 1,100 people in 43 offices throughout the U.K., Gallagher said in its statement, offering personal lines insurance, commercial alternatives, underwriting, and retail insurance products.
After the deal closes, which is expected in October, the combined operations will employ approximately 3,100 and have an estimated 70 offices, Gallagher said.
The acquisition of Giles is expected to add approximately $140.5 million in annual revenue, and generate annualized EBITDA of over $46.8 million in 2014, before acquisition-related expenses. Gallagher will use available cash and its existing credit line to finance the transaction, and intends to issue long-term notes "over the following six months," to repay the acquisition-related debt.
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