Arthur J. Gallagher Buys Bollinger Insurance Brokerage

Before you go, we thought you'd like these...
Before you go close icon

Itasca, Ill.-based Arthur J. Gallagher has a new subsidiary today.

On Tuesday, Gallagher announced that it has acquired Bollinger, for $172 million cash plus 3.2 million Gallagher shares. Gallagher, which specializes in retail property and casualty insurance placement, wholesale brokerage and program management, employee benefits brokerage, and consultancy, boasts 500 employees operating out of eight offices in New Jersey, New York, Pennsylvania, and Connecticut, and is the nation's 21st largest insurance broker.

Announcing the acquisition, Gallagher CEO J. Patrick Gallagher Jr. said. "The Bollinger acquisition gives us a unique opportunity to significantly expand our Northeastern operating platform and market presence in three of our core businesses." He called the deal "the perfect fit for our clients and employees."

Gallagher anticipates that Bollinger will generate $100 million in incremental revenue for the company annually and will be profitable for the company, even accounting for integration costs. Investors seem to agree, bidding up Gallagher shares by 1.5% in Tuesday trading to close at $44.38.

The article Arthur J. Gallagher Buys Bollinger Insurance Brokerage originally appeared on

Fool contributor Rich Smith and The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading