In an effort to strengthen its foothold in Kansas,
Arthur J. Gallagher & Co.
) acquired Overland Park, KS-based RJ Dutton Incorporated (RJ
Dutton) for an undisclosed amount.
Founded in 1995, RJ Dutton provides employee benefit consultation
and brokerage services. The company provides these services to
self-funded and large group clients across the nation. It also
offers designing of benefits plan, group purchasing programs and
several consumer directed plans. RJ Dutton specializes in the
energy, medical, professional sports, retail, mining and
The acquisition is thus expected to enrich Arthur J. Gallagher
& Co.'s employee benefits operations besides adding strength
to its client base in Kansas.
Following the acquisition, employees of RJ Dutton will continue
to work in their current location, led by John Neumaier, the
leader of south central employee benefit consulting and brokerage
operations of Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co. has been continually undertaking
acquisitions to ramp up its growth profile. In the third quarter
of 2013, the insurance broker undertook six acquisitions. This
compares favorably with five acquisitions (with annualized
revenues totaling $35.9 million) closed in the second
quarter. With the latest acquisition, the tally reaches
sixteen till date.
Arthur J. Gallagher & Co.'s strong financial position
continues to support its robust acquisition strategy. Shares of
this insurance broker gained nearly 27% riding on the strength of
its impressive inorganic growth story.
With optimism over the current acquisitions and solid execution,
Arthur J. Gallagher & Co. is witnessing upward estimate
revisions over past few weeks. 4 of 11 estimates were
raised for 2013 while 5 of 12 estimates moved north for 2014. The
Zacks Consensus Estimate for 2013 and 2014 is currently pegged at
$2.20 and $2.60 respectively.
The estimates translate to a year-over-year improvement of
27.2% and 18.2% respectively. Arthur J. Gallagher & Co.
presently holds a Zacks Rank #2 (Buy).
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Among other insurance brokers following the inorganic growth
route, Mercer, the consulting wing of
Marsh & McLennan Companies Inc.
), announced its intention to purchase the pension wind-up
operations of PricewaterhouseCoopers (PwC) in Canada in August.
Brown & Brown Inc.
) closed its merger with Beecher Carlson Holdings, Inc. in July.
) closed the acquisition of Mass.-based PlanPrescriber, Inc.