Rumours of the deal had been circling for almost a year and were confirmed in January
Gallagher has today announced the completed acquisition of specialist UK insurance broker Stackhouse Poland Group.
Insurance Times broke the news of a potential deal at the beginning of the year, with the reported figure up to £300m.
Soon after, the deal was confirmed when Gallagher signed an agreement to take over 100% of the specialist broker.
Now, after getting regulatory approval, Gallagher has announced the deal has been completed.
The £268m ($350m) figure was not mentioned in the announcement, but in a filing by parent company Arthur J Gallagher on 8 February confirmed that it had agreed the fee in “cash consideration”.
It said: “On 22 December, 2018, we signed a definitive agreement to acquire 100% of the equity of Stackhouse Poland Group for approximately $350m of cash consideration.”
Formerly with private equity company Synova Capital, Stackhouse Poland enjoyed steady growth, leaving as a company with £55m in annual revenues and operating from a network of 23 offices.
Attention turns to integration
Michael Rea, chief executive of the Gallagher’s UK retail division, said: “Stackhouse Poland is a fantastic business that strengthens our specialist businesses, expands our route to market and, importantly, extends our customer choice.
“Culturally we are a great fit — with our shared values of ‘doing the right thing’ for our clients and colleagues — and today we are delighted to welcome more than 500 new colleagues into the Gallagher family. Now we turn our attention to bringing together our businesses and combining our capabilities for the benefit of all our clients.”
Simon Matson, chief executive of Gallagher’s UK broking and underwriting business, added: “The acquisition of such a high-performing, well-respected broker as Stackhouse Poland is testament to the great quality of businesses and talent that Gallagher continues to attract here in the UK. I very much look forward to meeting all our new colleagues in the weeks and months to come.”
Ideal ally in Gallagher
Meanwhile, Tim Johnson, group chief executive of Stackhouse Poland said: “In Gallagher we have found the ideal ally to take the business to the next level.
“It is clear that the Gallagher team shares Stackhouse Poland values – putting clients first by employing and developing top class insurance professionals. The support we have had from our investment partners at Synova has seen us grow into a significant business in the UK marketplace, and the time was right to find a long-term global partner.”
Jeremy Cary, executive chairman of Stackhouse Poland, said: “For the last 17 years, initially with business partner James Agnew and more recently in wider partnership with Tim Johnson and Synova, we have resolutely focused on building a private client and specialist commercial broking business, where organic growth has been equally important as growth by acquisition.
“Stackhouse Poland’s success has been a consequence of the fantastic clients we serve and the equally fantastic people we employ. The Gallagher business is infused with a similar culture, where it is all about clients and colleagues, and so I am happy to be passing the baton to a great home.”
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