Arthur J. Gallagher & Co. expands with Australian acquisition

Published 01/04/2025, 22:06
Arthur J. Gallagher & Co. expands with Australian acquisition

ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co., the global insurance brokerage and risk management services firm, has acquired Tresidder Insurance Brokers, a company based in Australia that specializes in property and casualty brokerage services. The acquisition, which was announced today, is part of Gallagher’s strategic expansion in the Australian market.

Tresidder Insurance Brokers operates out of Victoria and Queensland, offering its services to both commercial and personal lines clients. The firm has developed a particular expertise in several industries, including manufacturing, food and beverage, biotechnology, and agriculture. This acquisition aligns with AJG’s growth trajectory, as InvestingPro data shows the company achieved 14.3% revenue growth in the last twelve months.

The move will see Brad Tresidder, Dean O’Halloran, and their associates join Gallagher’s specialty broking division in Australia. J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co., expressed his enthusiasm about the acquisition, stating, "Tresidder Insurance Brokers is a highly regarded firm that will enhance our client-service capabilities in Australia."

Arthur J. Gallagher & Co., headquartered in Rolling Meadows, Illinois, operates in approximately 130 countries worldwide. The company’s services include insurance brokerage, risk management, and consulting, delivered through its own operations and a network of correspondent brokers and consultants.

The financial terms of the transaction were not disclosed in the announcement. This acquisition is expected to further strengthen Gallagher’s presence in the Australian market, where it has been increasingly active.

The integration of Tresidder’s team is indicative of Gallagher’s ongoing strategy to grow its global team and enhance service offerings for clients across various sectors. This announcement is based on a press release statement from Arthur J. Gallagher & Co.

In other recent news, Arthur J. Gallagher & Co. announced the acquisition of Litchfield Special Risks, Inc. (LSR), a Texas-based wholesale insurance broker. This acquisition is aimed at enhancing Gallagher’s presence in the Southwest US, particularly in the transportation and property/casualty sectors. The financial terms of the deal were not disclosed. Meanwhile, Piper Sandler has maintained an Overweight rating on Arthur J. Gallagher, with a price target of $350, noting the company’s updated guidance and potential margin expansion due to interest on funds from a delayed acquisition.

Keefe, Bruyette & Woods also adjusted their outlook, raising the price target to $314 while maintaining a Market Perform rating. This adjustment comes after revising earnings per share estimates and acknowledging expected organic growth. Evercore ISI increased its price target to $352, citing improvements in core earnings and stronger-than-expected organic growth. The firm expressed confidence in Arthur J. Gallagher’s valuation despite temporary concerns related to the delayed AssuredPartners deal.

BMO Capital Markets maintained an Outperform rating with a $332 target, emphasizing the high likelihood of the AssuredPartners acquisition’s successful conclusion. This acquisition is expected to expand Gallagher’s market share in the insurance brokerage industry. These developments reflect Arthur J. Gallagher’s strategic growth plans and position within the industry, with analysts generally expressing confidence in the company’s financial health and operational strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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