Arthur J. Gallagher & Co. has inked an agreement to acquire Eastern Insurance Group, based in Natick, Massachusetts, and a subsidiary of Eastern Bank. The completion of this transaction is contingent upon regulatory approval and is anticipated to conclude in the fourth quarter of 2023.
Eastern Insurance specializes in offering extensive commercial property/casualty and personal lines products, along with employee benefits consulting, catering to clients throughout the Northeastern United States.
Tim Lodge and his team will maintain their current location, reporting to Patrick Kennedy, overseeing Gallagher’s Northeast region retail property/casualty brokerage operations, and John Neumaier, overseeing Gallagher’s East region employee benefits consulting and brokerage operations.
Regarding financials, Eastern Insurance reported pro forma revenues and EBITDAC (factoring in minimal expected synergies) for the 12 months ending on June 30, 2023, amounting to approximately $104 million and $37 million, respectively. The acquisition entails Gallagher acquiring Eastern Insurance’s assets for a consideration of $510 million net of agreed seller-funded expenses.
“Eastern Insurance is highly regarded throughout New England, where they have established a strong culture and demonstrated steady organic growth. Their extensive niche expertise in retail, construction, real estate, hospitality, and benefits will enhance the value we deliver to our clients and significantly expand our capabilities in the region,” Gallagher president, chairman, and CEO J. Patrick Gallagher said. “I look forward to welcoming Tim and the Eastern Insurance team to our growing Gallagher family of professionals.”
Gallagher’s latest swoop follows another recent acquisition, with the broker announcing its purchase of Mississippi-based Southern Insurance.
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