US broking group Arthur J Gallagher now estimates that the newly-acquired Heath Lambert will produce earnings of $30m (£18.1m) by 2013.
The estimate is contained in Gallagher’s second quarter results, announced yesterday.
In its May 12 announcement of the purchase of Heath Lambert, Gallagher said it expected the company to be bringing in $33m (£20m) in earnings before interest, income taxes, depreciation, amortisation and the change in estimated acquisition earn-out payables (EBITDAC) by 2013.
Gallagher has maintained its 2012 EBITDAC target of $20m (£12m) for Heath Lambert, and expects the company to break even in the second half of 2011.
Gallagher used an exchange rate of $1.65 to £1 when producing its estimates. The company said it is not expecting to revise the estimates further, and actual amounts will differ.
Gallagher expects it will take up to two years to fully integrate Heath Lambert into its existing operations.
The Arthur J Gallagher group made a net profit of $56.9m in the first half of 2011, down 22% on the $73.2m it made in the same period last year. EBITDAC fell to $159.7m from $171.3m.
The drop in earnings came despite a 5.5% increase in revenues to $993.5m from $941.9m.
Gallagher’s broking division alone brought in EBITDAC of $145.5m in H1 2011, up 2% on the $142.9m made in H1 2010.
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