Carrying forward its consistent trend of buyouts, Arthur J Gallagher & Co. ( AJG) announced that it has acquired New York-based retail insurance broker, Spataro Insurance Agency, Inc. for an undisclosed amount. Spataro Insurance is based in Burnt Hills, NY.
Arthur J. Gallagher & Co.’s strong financial position comprising substantial cash balance and retained earnings continues to support its series of acquisitions.
Spataro Insurance was founded in 1932 and provides personal lines, risk management and property and casualty insurance products and services to commercial as well as individual clients across northeastern United States. Its insurance coverage specializes in the technology, manufacturing, construction, transportation and restaurant industries. Additionally, they provide insurance coverage to schools, non-profit organizations and municipalities as well.
Strong geographic presence of Spataro Insurance and its focus on niche specialization is expected to further enrich Arthur J. Gallagher & Co.’s own portfolio besides strengthening its operations in the northeast region of the country.
Arthur J. Gallagher & Co. regularly undertakes acquisitions to augment its product and service offerings and leverage its international footprint. In the fourth quarter of 2013, the company undertook eleven acquisitions. In February this year, Arthur J Gallagher & Co. announced the acquisition of Kent, Kent & Tingle, based in Shreveport, LA for an undisclosed amount. This buyout is expected to consolidate the acquirer’s employee benefit, risk management and property and casualty services business.
Additionally, in the beginning of March, the company inked a deal to acquire a majority stake in Latin American property and casualty insurer – JAO & Partners, for an undisclosed amount. The acquisition complements Arthur J Gallagher's risk management services portfolio as JAO & Partners offers property and casualty and financial risk products to its clients across Peru.
Other Stocks to Consider
Arthur J. Gallagher & Co. presently carries a Zacks Rank #4 (Sell). Better-ranked insurance brokers include Marsh & McLennan Companies, Inc. ( MMC), Hannover R ( HVRRY) and Erie Indemnity Co. ( ERIE). All these stocks carry a Zacks Rank #2 (Buy).