On Tuesday, Arthur J. Gallagher & Co. ( AJG ) reached a definitive agreement to acquire Woodruff Sawyer for $1.2 billion.

Operating from 14 U.S. offices and one U.K. office, Woodruff Sawyer specializes in management liability, construction, and real estate. 

Woodruff offers a comprehensive range of commercial property/casualty products, employee benefits solutions, and risk management services, primarily serving middle and large-market clients.

For the trailing 12 months ending December 31, 2024, Woodruff Sawyer’s pro forma revenues and EBITDAC (including expected synergies) were approximately $268 million and $88 million, respectively.

The company expects integration costs and anticipated non-cash management retention expenses to reach $150 million over the next three years.

The Woodruff Sawyer team, led by Andy Barrengos, will operate under the direction of Peter Doyle, head of Gallagher’s U.S. retail property/casualty brokerage operations.

The transaction, pending regulatory approval, is expected to close in the second quarter of 2025.

Recently, the company disclosed several acquisitions, which include buyout of New Zealand-based RMA General Limited (RMA) and its associated insurance broking businesses, Minnesota-based Dyste Williams, and Brazil-based Case Group.

In January, Arthur reported fourth-quarter 2024 EPS of $1.12, missing the $1.35 estimate, while sales of $2.716 billion exceeded the $2.690 billion estimate.

As of December 31, 2024, cash and cash equivalents stood at $14.987 billion.

Investors can gain exposure to the stock via Guru Favorite Stocks ETF ( GFGF ) and Harbor ETF Trust Harbor Dividend Growth Leaders ETF .

Price Action: AJG shares are down 0.28% at $336.31 premarket at the last check Wednesday.

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