Arthur J Gallagher & Co (AJG), an insurance brokerage and risk management services firm based in Illinois, has agreed to buy 87% stake in Canadian insurance broker Noraxis Capital, for an undisclosed sum.
Following completion of the transaction, which is expected to complete in July 2014 after receiving concerned regulatory approvals, the remaining 13% equity stake will continue to be owned by various management employees of Noraxis.
Managing 23 offices across Alberta, Manitoba, New Brunswick, Nova Scotia and Ontario, Noraxis offers retail commercial, personal and employee benefits insurance products and services.
At the end of 31 December 2013, Noraxis generated nearly C$125m ($m) in revenue and had more than 650 staff.
Arthur J Gallagher believes that the takeover will provide a significant Canadian platform for future growth; share a client focus that is primarily middle-market; provide opportunities to establish new MGA capabilities and offer cross-selling opportunities.
The latest acquisition follows takeover of Sunderland Insurance Services, which operates as a managing general underwriter and delivers excess and surplus hired and non-owned auto, liability and umbrella insurance products and services to its wholesale broker clients across the US.
Earlier in April, AJG acquired American Wholesalers Underwriting (AWU) in Stamford, Connecticut; and Mike Henry Insurance Brokers (MHIB) in Auckland, New Zealand.
AJG also signed an agreement to buy the Wesfarmers Insurance Brokerage operations, which comprises the OAMPS businesses in Australia and the UK, Crombie Lockwood in New Zealand and the associated operation, in a transaction valued at nearly A$1bn ($933m).
Operating across 25 countries, Arthur J Gallagher & Co delivers client-service capabilities in more than 140 countries globally, leveraging a network of correspondent brokers and consultants.
Image: Arthur J Gallagher & Co corporate headquarters in Itasca, Illinois. Photo courtesy of: Arthur J. Gallagher & Co. 1999 -2014.