Arthur J. Gallagher & Co. AJG has acquired Joseph Distel & Co, Inc. for an undisclosed amount. This buyout will enable the acquirer to expand its wholesale geographic footprint along with enhancement of its risk management services.
Farmington, CT-based Joseph Distel was founded in 1955. The wholesale insurance broker and managing general agent serves its independent insurance agent and broker clients across the Northeast region with excess and surplus, property and casualty, professional business liability and other specialty insurance products and services. The company is an expert in insuring the transportation industry. Joseph Distel is renowned for its industry expertise and strong presence in the regions where it operates. Thus, the buyout will further boost the already robust inorganic growth portfolio of the acquirer.
Joseph Distel's commitment toward exemplary client service will be value accretive to Arthur J. Gallagher's client portfolio. Moreover, the acquired company's outstanding sales culture will add seasoned specialty product knowledge to the acquirer's risk placement services. This marks the fifth takeover by the company this year. Notably, Arthur J. Gallagher purchased Kane Group's insurance management operations ("KIM") on Mar 21, 2016.
Arthur J. Gallagher, which currently carries a Zacks Rank #3 (Hold), is well known for its spree of strategic acquisitions. In 2015, the insurance broker acquired 44 entities, including two in the risk management segment, with net annualized revenue grossing $230 million.
Following the inorganic route to ramp up one's growth profile seems a well-accepted strategy among insurers as acquisitions and consolidations rage this space. Recently, Sun Life Assurance Company of Canada, the wholly owned subsidiary of Sun Life Financial Inc. SLF acquired the employee benefits business of Assurant Inc. AIZ for $940 million. Also, Marsh & McLennan Agency LLC ("MMA"), the middle market agency subsidiary of Marsh & McLennan Companies, Inc. MMC acquired Celedinas Insurance Group for an undisclosed amount.
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