The Baldwin Group, an independent insurance brokerage and advisory firm, and CAC Group, a national middle-market insurance broker and advisor, comprising CAC Specialty and CAC Agency, have completed the previously announced merger, with a total upfront consideration of $1.026 billion.
To recap, this merger is expected to create one of the largest independent insurance advisory and distribution platforms in the United States, with the entity expected to generate gross revenue and adjusted EBITDA of over $2 billion and $470 million, respectively, for 2026.
The merger combines CAC’s specialty expertise with Baldwin’s middle-market distribution platform and is expected to leverage its reinsurance and MGA operations, as well as its proprietary technology platforms.
Additionally, this move aims to enhance and expand the specialty capabilities of The Baldwin Group’s Insurance Advisory Solutions (IAS) segment by integrating CAC’s expertise in natural resources, private equity, real estate, senior living, education, and construction.
Meanwhile, the new entity holds to benefit from CAC’s strength in specialty product lines, including financial lines, transactional liability, cyber, and surety, all of which benefit from its data and analytics platform.
The transaction is expected to be approximately net leverage neutral at close and to accelerate Baldwin’s path to deleveraging through 2028.
As previously reported, the total consideration of $1.026 billion consists of $438 million in cash and 23.2 million shares of Baldwin common stock valued at $589 million based on the 30-day volume-weighted average pricing as of December 1st, 2025; implied multiple of 7.9x 2025E Pro Forma Adjusted EBITDA inclusive of targeted full run-rate synergies.
Also informed previously, post-closing payments included a performance-based earnout of up to $250 million and a $70 million deferred payment, as the transaction is expected to be accretive to 2025.
