A Canadian brokerage employing more than 650 people across Canada has just signed over 87 per cent of its equity interests to Arthur J.
Gallagher & Co.
Noraxis Capital Corporation – a top-five Canadian insurance broker – provides retail commercial, personal and employee benefits insurance products and services. The company generated nearly $125 million in revenue for the year ended December 31, 2013, and operates out of 23 offices across Alberta, Manitoba, New Brunswick, Nova Scotia and Ontario.
“In Noraxis, we have found our ideal Canadian partner and together we now have a solid platform for organic growth and a leadership team that will continue to attract new merger partners,” says David Ross, CEO of Arthur J. Gallagher International. “By joining with Gallagher, Noraxis will be able to leverage our sales and service capabilities across Canada. In particular, our combined expertise in areas such as energy, construction and mining align well with the growth opportunities in the Canadian market.”
The remaining 13 per cent will continue to be owned by various management employees of Noraxis. The transaction is subject to regulatory approval and is expected to close in July.
“From our earliest engagement, there has been genuine excitement right across our team at the prospect of joining Gallagher,” says Ken Keenan, president of Noraxis Group. “As a business built by acquiring brokers known to be the best in their geography and niche, we share an obvious client-first service ethos and entrepreneurial culture with Gallagher.”
Keenan says this transaction is great news for all of the staff and Noraxis’ insurance markets. (continued.)
#pb#
“Most importantly, our clients can now look forward to accessing Gallagher’s global resources and expertise,” he says, “while continuing to receive the high quality and expert service offered from their local Canadian broker and account team.”
Noraxis’ commercial, personal and employee benefit operations which operate under several different names: Renfrew (mostly in Alberta), Ranger (mostly in Manitoba), BF&G Group (mostly in Nova Scotia and New Brunswick), and CG&B, Stevenson & Hunt, and Atrens Counsel (mostly in Ontario).
The Noraxis operations will continue to be managed by Keenan.
“By adding Canada to our recent expansion in Australia, New Zealand and the U.K., we are now well positioned in those countries to replicate our successful acquisition strategy of partnering with smaller, family-owned, and entrepreneurial agents and brokers,” says J. Patrick Gallagher, Jr., chairman, president and CEO, of Arthur J. Gallagher & Co. “In each of the countries, we believe there will continue to be a wave of consolidation opportunities like we are seeing in the United States.”
Arthur J. Gallagher, the brand name for Arthur J. Gallagher & Co. outside of the United States, employs 4,500 staff across the U.K., Australia, Singapore, Caribbean, Canada, Chile, Norway and New Zealand. Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Ill., has operations in 25 countries and offers client service capabilities in more than 140 countries around the world through a network of correspondent brokers and consultants.
