Brown & Brown acquires Tire Shield to expand dealer services

Published 12/08/2025, 22:38
Brown & Brown acquires Tire Shield to expand dealer services

LAS VEGAS - Brown & Brown Dealer Services (BBDS), a division of Brown & Brown, Inc. (NYSE:BRO), has acquired the assets of Tire Shield, Inc., according to a press release statement issued Tuesday.

Tire Shield, founded in 1997, provides administrative services for dealers and agents offering tire and wheel road hazard products and GAP waiver products across the RV, automotive, and power sports industries.

The Tire Shield team will continue to operate from their Las Vegas offices while joining Brown & Brown Dealer Services. They will report to William Kelly, president of BBDS’s administrative services.

Mike Neal, president of BBDS, said the acquisition allows the company to expand its offerings to include GAP waiver administration services alongside its existing vehicle service contract administration.

Mark Otto, owner of Tire Shield, expressed enthusiasm about joining BBDS, noting the acquisition would enable "broader capabilities and opportunities" to serve customers.

Financial terms of the transaction were not disclosed in the announcement.

Brown & Brown, headquartered in Daytona Beach, Florida, operates more than 700 locations with over 23,000 professionals globally. The insurance brokerage firm has been providing insurance solutions since 1939.

The acquisition was announced by J. Scott Penny, chief acquisitions officer of Brown & Brown, and Mark N. Otto, owner of Tire Shield.

In other recent news, Brown & Brown reported strong financial results for the second quarter of 2025, with earnings per share reaching $1.03, surpassing the forecast of $0.99. The company’s revenue also exceeded expectations, totaling $1.29 billion. Despite these positive earnings, several analysts have adjusted their price targets for Brown & Brown. Keefe, Bruyette & Woods lowered their price target to $87, citing slower organic growth and higher expenses. Truist Securities also reduced their target to $120 due to the company’s exposure to the Florida property market downturn, though they maintain a positive outlook for the future. BMO Capital decreased their target to $106, describing a recent stock price drop as excessive. Conversely, BofA Securities upgraded Brown & Brown to a Buy rating, raising their price target to $130, based on valuation after a significant underperformance compared to the broader market. These developments highlight a mixed sentiment among analysts regarding Brown & Brown’s future prospects.

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