Global insurance brokerage, risk management, and consulting services firm Arthur J. Gallagher & Co. (AJG) has acquired Garner & Glover. The terms of the acquisition were undisclosed.
Established in 1874, Garner & Glover is an independent insurance agency that provides a wide range of business and personal property/casualty, life, and benefits products. It also offers athletics, wellness, and risk management services.
Post-acquisition, it will continue to function with current management under the guidance of Gallagher’s Peter Doyle and John Tournet.
AJG’s Chairman, President, and CEO J. Patrick Gallagher, Jr. said, “Garner & Glover brings to Gallagher a strong and talented leadership, service and production team in an attractive and growing region of the U.S.” (See Arthur J. Gallagher stock analysis on TipRanks)
Gallagher Jr. added, “We are delighted to welcome Matt Sirmans, Chuck Shaw, and their associates to our growing, global team.”
On May 18, Deutsche Bank analyst Phil Stefano reiterated a Hold rating on the stock but increased the price target to $160 (10% upside potential) from $145.
Earlier this month, AJG agreed to acquire certain Willis Towers Watson reinsurance, specialty, and retail brokerage assets which will expand the company’s global footprint. The gross consideration for the purchase is $3.57 billion with an expected transaction close in H2 2021.
Commenting on AJG’s acquisition of Willis Towers assets, Stefano noted that at first glance, the purchase price seems to be well discounted and beneficial to Gallagher.
Consensus among analysts is that AJG is a Moderate Buy based on 5 Buys and 3 Holds. The average analyst price target of $155.13 implies 6.7% upside potential.
Shares have gained about 61.1% over the past year.
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