AJ Gallagher has signed a definitive agreement to acquire Woodruff Sawyer for a consideration of $1.2bn.
This publication reported in November that Woodruff Sawyer was exploring a sale of the business, which would see the employee-owned intermediary change hands for the first time in its 100+ year history.
AJ Gallagher said in a release that integration costs and expected non-cash management retention costs are expected to total $150mn over the next three years.
The Woodruff Sawyer team of roughly 600 employees, led by Andy Barrengos, will operate under the direction of Peter Doyle, head of Gallagher's US retail property/casualty brokerage operations.
Barrengos joined the company in 1996 and became CEO in 2016 and chairman in 2020.
"Woodruff Sawyer has an outstanding reputation in our industry, and we have long admired their niche expertise and client-focused culture,” said Pat Gallagher, Gallagher’s chairman and CEO.
“Our complementary strengths will enhance the value we deliver to our clients and significantly expand our capabilities.”
Woodruff Sawyer mainly serves middle and large-market clients with expertise in management liability, construction and real estate. It has 14 US offices and one UK office.
For full year 2024, the San Francisco, California-based brokerage firm’s pro forma revenues stood at $268mn and its Ebitdac, including expected synergies, was $88mn.
The transaction is subject to regulatory approval and is expected to close during the second quarter of 2025.