U.S global insurance brokerage and risk management services firm, Arthur J. Gallagher & Co. has announced the signing of a definitive agreement to acquire specialist UK insurance broker Stackhouse Poland.
This announcement follows reports last week that the private equity owners of Stackhouse Poland had hired individuals from global independent investment banking advisory firm Evercore to find a buyer and that Arthur J Gallagher had shown interest.
The transaction is subject to regulatory approval and is expected to close in the first quarter 2019.
Founded in 1974 as a local community broker, Stackhouse Poland has since grown through strategic acquisition into a highly successful, large-scale specialist UK insurance broker generating over £55 million in annualised revenues.
Stackhouse Poland has over 500 employees and operates from a network of 23 offices across the UK.
“Having begun life as a small, general practice broker, Stackhouse Poland has since grown through a well-managed blend of organic growth and targeted acquisitions, just like Gallagher, ” said J. Patrick Gallagher, Jr., Chairman, President and Chief Executive Officer.
“With its suite of specialisms and first-class reputation among clients in the UK marketplace, it will make an outstanding addition to our global team.”
Upon reaching the agreement Michael Rea, CEO of the UK Retail division at Gallagher said, “This is a fantastic opportunity to bring together our two high-performing businesses.”
“We’ve long admired Stackhouse Poland as an ambitious, well-run insurance broker with an impressive portfolio of specialisms that are highly complementary to our own, such as private clients, real estate, marine, churches and education.”
“From our earliest discussions with Tim and the team, it was clear their business, like ours, has been built around a relentless focus on client service and we look forward to creating an extraordinary business together.”
Tim Johnson, Group CEO of Stackhouse Poland, added, “In Gallagher we have found the ideal ally to take the business to the next level. It is clear that the Gallagher team shares Stackhouse Poland values – putting clients first by employing and developing top class insurance professionals.”
“The support we have had from our investment partners at Synova has seen us grow into a significant business in the UK marketplace, and the time was right to find a long-term global partner.”
Jeremy Cary, Executive Chairman of Stackhouse Poland, said, “For the last 17 years, initially with business partner James Agnew and more recently in wider partnership with Tim Johnson & Synova, we have resolutely focused on building a private client and specialist commercial broking business, where organic growth has been equally important as growth by acquisition.
“Stackhouse Poland’s success has been a consequence of the fantastic clients we serve and the equally fantastic people we employ. The Gallagher business is infused with a similar culture, where it is all about clients and colleagues, and so I am happy to be passing the baton to a great home.”