#USA #San Francisco #Arthur J. Gallagher #Insurance Acquisition #Woodruff Sawyer

Arthur J. Gallagher & Co. Announces Acquisition of Woodruff Sawyer

On March 4, 2025, Arthur J. Gallagher & Co., a prominent player in the insurance, risk management, and consulting industry, revealed its definitive agreement to acquire Woodruff Sawyer, a respected entity based in San Francisco, California. This strategic acquisition is anticipated to close in the second quarter of 2025, pending regulatory approvals.

Overview of Woodruff Sawyer

Established in the heart of San Francisco, Woodruff Sawyer has built a solid reputation, providing an extensive range of commercial property and casualty products, as well as employee benefits solutions and risk management services. The firm specializes in catering to middle and large market clients, operating from 14 offices across the United States and one in the UK. With a focus on management liability, construction, and real estate, Woodruff Sawyer is led by CEO Andy Barrengos, who will transition the leadership aligned with Gallagher’s operational direction under CEO Peter Doyle.

The Vision Behind the Acquisition

J. Patrick Gallagher, Jr., Chairman and CEO of Gallagher, expressed excitement over the acquisition, highlighting the unique reputation of Woodruff Sawyer in the industry. He stated, "Woodruff Sawyer has an outstanding reputation, and we have long admired their client-focused culture and niche expertise. The combination of our strengths is expected to enrich the value we provide to our clients and enhance our overall capabilities."

In response, Andy Barrengos voiced enthusiasm for joining Gallagher, appreciating its commitment to employees and shared values centered on integrity and excellence. He emphasized that the two companies’ complementary expertise will bolster their ability to serve clients effectively.

Financial Implications

From a financial perspective, Woodruff Sawyer is projected to generate approximately $268 million in pro forma revenues and $88 million in EBITDAC for the trailing twelve months ending December 31, 2024. Under the terms of the agreement, Gallagher will acquire Woodruff Sawyer for approximately $1.2 billion. The integration of Woodruff Sawyer’s operations is expected to incur costs amounting to $150 million over the next three years, accounting for management retention and integration expenses.

Looking Ahead

This acquisition marks a significant step for Gallagher as it seeks to expand its services and reach within the insurance sector. The synergy between the two companies is expected to yield enhanced efficiency and greater service offerings for clients. However, as outlined in Gallagher’s communications, the acquisition remains contingent upon satisfying various regulatory and operational requirements.

Conclusion

The acquisition of Woodruff Sawyer represents a substantial growth opportunity for Arthur J. Gallagher & Co. as it continues to solidify its position within the competitive landscape of insurance brokerage and risk management. The strategic integration of both firms will be monitored closely, with attention to client impact and operational effectiveness following the merger.

For ongoing developments regarding this acquisition and Gallagher’s expanding portfolio, stakeholders and interested parties are encouraged to stay informed through official updates from Gallagher.