Arthur J. Gallagher & Co. (AJG) will acquire San Francisco-based Woodruff Sawyer, a commercial property/casualty broker and risk management services provider, for $1.2bn.
The deal, pending regulatory approval, is set to close in the second quarter of 2025, AJG stated.
Chairman and CEO J. Patrick Gallagher Jr. said the acquisition will expand capabilities and improve client service. Woodruff Sawyer offers commercial property & casualty products, employee benefits solutions, and risk management services, primarily serving middle and large market clients.
The firm operates from 14 U.S. offices and one in the U.K., employing over 600 people. It specializes in management liability, construction, and real estate.
Andy Barrengos leads Woodruff Sawyer and will report to Peter Doyle, who heads Gallagher’s U.S. retail property/casualty brokerage operations.
AJG reported Woodruff Sawyer’s 2024 pro forma revenue at $268mn, with earnings before interest, taxes, depreciation, amortization, and coronavirus-related adjustments at $88mn, including anticipated synergies.
Integration and non-cash management retention costs are projected at $150mn over three years.
AJG’s earlier $13.5bn acquisition of AssuredPartners Inc. will expand its reach, strengthen niche practice groups, and reinforce its middle-market focus.
Gallagher said in a recent call that AssuredPartners was among a small group of potential large merger targets. The deal is expected to close this quarter.
