Carrying forward its consistent trend of buyouts,
Arthur J Gallagher & Co.
) announced that it has acquired New York-based retail insurance
broker, Spataro Insurance Agency, Inc. for an undisclosed amount.
Spataro Insurance is based in Burnt Hills, NY.
Arthur J. Gallagher & Co.'s strong financial position
comprising substantial cash balance and retained earnings
continues to support its series of acquisitions.
Spataro Insurance was founded in 1932 and provides personal
lines, risk management and property and casualty insurance
products and services to commercial as well as individual clients
across northeastern United States. Its insurance coverage
specializes in the technology, manufacturing, construction,
transportation and restaurant industries. Additionally, they
provide insurance coverage to schools, non-profit organizations
and municipalities as well.
Strong geographic presence of Spataro Insurance and its focus
on niche specialization is expected to further enrich Arthur J.
Gallagher & Co.'s own portfolio besides strengthening its
operations in the northeast region of the country.
Arthur J. Gallagher & Co. regularly undertakes
acquisitions to augment its product and service offerings and
leverage its international footprint. In the fourth quarter of
2013, the company undertook eleven acquisitions. In February this
year, Arthur J Gallagher & Co. announced the acquisition of
Kent, Kent & Tingle, based in Shreveport, LA for an
undisclosed amount. This buyout is expected to consolidate the
acquirer's employee benefit, risk management and property and
casualty services business.
Additionally, in the beginning of March, the company inked a
deal to acquire a majority stake in Latin American property and
casualty insurer - JAO & Partners, for an undisclosed amount.
The acquisition complements Arthur J Gallagher's risk management
services portfolio as JAO & Partners offers property and
casualty and financial risk products to its clients across
Other Stocks to Consider
Arthur J. Gallagher & Co. presently carries a Zacks Rank
#4 (Sell). Better-ranked insurance brokers include
Marsh & McLennan Companies, Inc.
Erie Indemnity Co.
). All these stocks carry a Zacks Rank #2 (Buy).
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