We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arthur J. Gallagher (AJG) Announces Garner & Glover Buyout
Read MoreHide Full Article
Arthur J. Gallagher & Co. (AJG - Free Report) recently acquired Garner & Glover Company. Terms of the transaction were kept under wraps.
Rome, GA -based Garner & Glover Company, founded in 1874, is an independent insurance agency that represents other different insurance companies. It caters to clients across the United States.
It furnishes various Personal Insurance coverages, which include Auto Insurance, Homeowners Insurance, Individual Life Insurance, Flood Insurance and Renters Insurance apart from providing athletics, wellness and risk management services.
This acquisition will provide the acquirer with stable and efficient leadership in the developed regions of the United States. Further, this transaction will boost the insurance services of Arthur J. Gallagher.
Inorganic Growth Story
Acquisitions enable Arthur J. Gallagher to expand into desirable geographic locations, extend its presence in retail and wholesale insurance and reinsurance brokerage services markets, and increase the volume of general services currently provided. Its inorganic pipeline remains strong, with around $250 million of annualized revenues associated with 40 term sheets signed or being prepared.
In the first quarter, the insurance broker completed five brokerage mergers, representing about $90 million of estimated annualized revenues. So far this year, it has made 12 acquisitions. Revenue growth rates have generally been 5-15% for 2021 acquisitions. The buyouts provide the company with incremental capabilities and services to assist clients across Australia, the U.K., Europe and the United States. The company remains focused on its long-term growth strategies of delivering organic revenue growth, and pursuing mergers and acquisitions.
Other Acquisitions in the Same Space
There have been a host of acquisitions in the insurance space of late, given significant capital availability. In the ongoing second quarter of 2021, Brown & Brown, Inc. (BRO - Free Report) acquired substantially all Piper Jordan assets. Marsh & McLennan Companies, Inc.’s (MMC - Free Report) unit Marsh & McLennan Agency LLC (“MMA”) recently acquired PayneWest Insurance, one of the largest independent agencies in the United States. Alleghany Corporation’s wholly-owned subsidiary Alleghany Capital Corporation acquired Wilbert, Inc. (WPS).
Price Performance
Shares of Arthur J. Gallagher have gained 59.8% in a year, outperforming the industry’s increase of 30.9%. Efforts to ramp up the company’s growth profile and capital position should help shares gain further.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Arthur J. Gallagher (AJG) Announces Garner & Glover Buyout
Arthur J. Gallagher & Co. (AJG - Free Report) recently acquired Garner & Glover Company. Terms of the transaction were kept under wraps.
Rome, GA -based Garner & Glover Company, founded in 1874, is an independent insurance agency that represents other different insurance companies. It caters to clients across the United States.
It furnishes various Personal Insurance coverages, which include Auto Insurance, Homeowners Insurance, Individual Life Insurance, Flood Insurance and Renters Insurance apart from providing athletics, wellness and risk management services.
This acquisition will provide the acquirer with stable and efficient leadership in the developed regions of the United States. Further, this transaction will boost the insurance services of Arthur J. Gallagher.
Inorganic Growth Story
Acquisitions enable Arthur J. Gallagher to expand into desirable geographic locations, extend its presence in retail and wholesale insurance and reinsurance brokerage services markets, and increase the volume of general services currently provided. Its inorganic pipeline remains strong, with around $250 million of annualized revenues associated with 40 term sheets signed or being prepared.
Arthur J. Gallagher currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the first quarter, the insurance broker completed five brokerage mergers, representing about $90 million of estimated annualized revenues. So far this year, it has made 12 acquisitions. Revenue growth rates have generally been 5-15% for 2021 acquisitions. The buyouts provide the company with incremental capabilities and services to assist clients across Australia, the U.K., Europe and the United States. The company remains focused on its long-term growth strategies of delivering organic revenue growth, and pursuing mergers and acquisitions.
Other Acquisitions in the Same Space
There have been a host of acquisitions in the insurance space of late, given significant capital availability. In the ongoing second quarter of 2021, Brown & Brown, Inc. (BRO - Free Report) acquired substantially all Piper Jordan assets. Marsh & McLennan Companies, Inc.’s (MMC - Free Report) unit Marsh & McLennan Agency LLC (“MMA”) recently acquired PayneWest Insurance, one of the largest independent agencies in the United States. Alleghany Corporation’s wholly-owned subsidiary Alleghany Capital Corporation acquired Wilbert, Inc. (WPS).
Price Performance
Shares of Arthur J. Gallagher have gained 59.8% in a year, outperforming the industry’s increase of 30.9%. Efforts to ramp up the company’s growth profile and capital position should help shares gain further.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>