Brown & Brown Inc.
) culminated the acquisition of Beecher Carlson Holdings Inc.
("Beecher Carlson") from Austin Ventures, FSPM and a group of
individual employee and non-employee equity holders yesterday.
The deal was announced in May 2013 and was pending regulatory
approval. The total net purchase consideration equates to $336.5
As per the deal, Beecher Carlson's middle-market retail
facilities in Oregon, Arizona and Mississippi. will be merged
with Brown & Brown Retail Division. Also, the OnPoint
programs will be added to Brown & Brown National Programs
Division. Its account division in Atlanta, Georgia will however
encounter no change.
Beecher Carlson is an insurance and risk management broker that
provides services like retail brokerage, program management and
captive management Brown & Brown being an insurance,
reinsurance and risk management provider, the acquisition of
Beecher Carlson is expected to strengthen the former's business
by exposing it to new opportunities, enhanced resources and
Brown & Brown is positioning itself to tap the opportunities
from a growing insurance market. Towards this end the company
acquired some assets of The Rollins Agency Inc. in Jun 2013. The
deal is also expected to enhance the risk management capabilities
of the company and at the same time increase the clientele base
of the company.
For the three months ending Mar 31, 2013, Brown & Brown's
revenues were $335 million, up 10.8% year over year. These
acquisitions are expected to augment the numbers further.
Acquisition activities are common in the insurance industry.
Companies engage in such endeavors in order to widen their
geographic presence, expand clientele base and gain on revenues.
Among industry majors who engaged in acquisition activities in
the last two months,
Arthur J. Gallagher & Co.
Marsh & McLennan Companies Inc.
) are some renowned names.
In May 2013, Arthur J. Gallagher entered into an agreement to
acquire Texas-based Garza Long Group ("GLG") while in Jun 2013,
Marsh & McLennan announced the acquisition of Dominican
Republic based Franco & Acra Tecniseguros.
Brown & Brown currently carries a Zacks Rank #3 (Hold).
Among others in the industry,
Willis Group Holdings Public Limited Company
) carries a favorable Zacks Rank #2 (Buy) and is worth
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