AJG to acquire Buck

Arthur J Gallagher & Co has agreed to acquire the partnership interests of BCHR Holdings, LP, dba Buck, a provider of retirement, HR and employee benefits consulting and administration services with over 2,300 employees, including more than 220 actuaries.

Under the agreement, Gallagher will acquire the partnership interests of BCHR Holdings, LP and its subsidiaries, for a gross consideration of US$660m, or approximately US$585m net of agreed seller funded expenses and net working capital. Gallagher expects to fund the transaction via free cash flow and short-term borrowings. The transaction is estimated to be approximately 2% accretive to adjusted diluted earnings per share over the trailing twelve month period ended 30th September 2022.

"Providing a comprehensive suite of products and services that allows employers to attract, engage and retain talent is at the heart of Gallagher Benefit Services' mission and our global Gallagher Better Works value proposition," said J Patrick Gallagher, Jr, chairman, president and CEO. "Through the complementary strengths of Buck's defined benefit offerings, investment consulting, digital employee engagement platform and international footprint, the acquisition will broaden, deepen and enhance our client offerings. I look forward to welcoming the 2,300 new colleagues joining us as part of this transaction to our growing Gallagher family of professionals."

The transaction is expected to close during the first half of 2023, subject to the usual regulatory approvals.

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