Arthur J. Gallagher & Co. had agreed to purchase Giles Group of Companies for GBP237 million. The move was for the insurer to expand in the UK. According to a statement issued today by Illinois based Gallagher, Giles had more than 1,100 workers and 43 offices.
The acquisition deal would add new clients in the company and would provide Gallagher more services to international operating clients. The company had been operating in the UK, Canada and Australia.
The insurer had aimed to compete with big names including Marsh & McLennan Cos and Aon Plc. Gallagher's revenue came from outside the US investors. The company's shares went up by 13% in 2013.
Chief Executive Officer J. Patrick Gallagher said in the statement, "We continue to look for outstanding international partners, We can significantly expand our operations in England and Scotland while adding business in location such as Northern Ireland and Wales."
The deal had been expected to close next month and would generate GBP90 million in annual revenue. This was according to statement issed by Gallagher. The broker added that the private placement of USD200 million in debt last June could be used for acquisitions.
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