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Gallagher expands with Durham & Bates acquisition

Published 12/19/2024, 10:10 PM
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ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co (NYSE:AJG)., the global insurance brokerage and risk management services firm, has acquired Durham & Bates Agencies, Inc., a Portland, Oregon-based insurance broker. The acquisition, announced today, brings additional expertise in property/casualty, marine, and employee benefits services to Gallagher's operations.

Durham & Bates has established a strong presence in the Pacific Northwest, catering to a diverse clientele with its specialized insurance services. The terms of the transaction have not been made public. Following the acquisition, the Durham & Bates team, including Jeremy Andersen, Sean McCarthy, Christen Picot, Stephanie Murphy, and David Hearns, will continue to operate from their current location. They will now report to Jim Buckley, who oversees Gallagher's Northwest region retail property/casualty brokerage operations, and Charlie Isaacs, who is responsible for the West region employee benefits consulting operations.

J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co., expressed enthusiasm for the expansion, highlighting the growth opportunities presented by Durham & Bates' marine expertise in the Pacific Northwest. He welcomed the new team, signaling a smooth integration into Gallagher's existing structure.

Arthur J. Gallagher & Co., which trades on the New York Stock Exchange under the ticker NYSE:AJG, offers its services across approximately 130 countries globally. The firm operates through a network of owned operations and a network of correspondent brokers and consultants.

This strategic move is part of Gallagher's ongoing efforts to enhance its service offerings and expand its market reach. The acquisition is based on a press release statement and further details regarding the financial impact of the transaction have not been disclosed.

In other recent news, Arthur J. Gallagher & Co. has been active in expanding its operations through a series of strategic acquisitions. The company recently acquired M.J. Schuetz Insurance Services Inc., strengthening Gallagher's Midwest operations. They also announced the acquisition of AssuredPartners, a significant move that BMO Capital Markets views as a strategic use of free cash flow. This acquisition led BMO Capital to adjust its future estimates for Gallagher, including a 5% increase for 2025 and an 8% rise for 2026.

In addition, Gallagher has also expanded its Southeastern U.S. presence with the acquisition of Sheila J. Butler & Company, a Georgia-based employee benefits brokerage. The company further completed a significant common stock offering and is in the process of a multi-tranche notes offering.

On the financial front, Arthur J. Gallagher reported a 13% increase in revenue across its Brokerage and Risk Management segments. Analysts project organic growth in both these segments for the year 2025.

Analyst firms Keefe, Bruyette & Woods and Truist Securities have revised their price targets for Arthur J. Gallagher, with the former raising it to $292 and the latter maintaining it at $275. BMO Capital Markets also raised their price target for the company's shares to $332. These are recent developments in Arthur J. Gallagher & Co.'s ongoing strategy to expand its market presence and enhance its service offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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