A spokesperson for Arthur J. Gallagher & Co. would not confirm whether its purchase of Bollinger, Inc., of Short Hills, N.J., announced this week, was the broker's largest single purchase ever. But the $100 million in annualized revenue Gallagher expects, according to a press release about the transaction, apparently eclipses the average for that category over the last five years by a factor of nearly 18.
Gallagher, the third largest U.S. insurance broker, reportedly paid $276.5 million in cash and stock for Bollinger, the nation's 21st largest broker. Rankings are according to Business Insurance magazine revenue analysis for 2012.
Gallagher expects to realize $20 million annually from Bollinger's employee benefits operation. Bollinger markets retail and wholesale products and services nationally through more than 50 agencies throughout New Jersey, and in Philadelphia, New York City, and Greenwich, Conn.
Recommended For You
In addition, Bollinger's retail property and casualty group is expected to generate $50 million annually for Gallagher, and a sports programs division should bring $10 million a year.
According to reported acquisitions cited in Gallagher's 2012 annual report, the company gained an average of $5.6 million in annualized revenue per purchase of 163 properties over the past five years. That amount is dwarfed by the Bollinger deal, which could add more than 1 percent of value to Gallagher's brokerage segment, and nearly 4 percent overall.
Gallagher's U.S. revenues for 2012 exceeded $1.9 billion, according to the rankings. Bollinger clocked in at nearly $132 million.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
