ROLLING MEADOWS, Ill., 19 September 2023 /PRNewswire/ — Arthur J. Gallagher & Co. announced today that it has signed a definitive agreement to acquire Natick, Massachusetts-based Eastern Insurance Group, LLC (Eastern Insurance), a subsidiary of Eastern Bank. The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter of 2023.
Eastern Insurance provides comprehensive commercial property/casualty and personal lines products and employee benefits consulting to customers throughout the northeastern United States. Tim Lodge and his team will remain in their current location under the leadership of Patrick Kennedy, head of Gallagher’s Northeast region commercial property/casualty brokerage operations, and John Neumaier, head of Gallagher’s Eastern region employee benefits consulting and brokerage operations.
“Eastern Insurance is highly regarded throughout New England, where they have established a strong culture and demonstrated steady organic growth. Their deep niche expertise in retail, construction, real estate, hospitality and employee benefits will enhance the value we deliver to our clients and significantly expand our capabilities in the region,” said J. Patrick Gallagher, Jr, Chairman, President and CEO. “I look forward to welcoming Tim and the Eastern Insurance team to our growing Gallagher family of professionals.
Eastern Insurance’s pro forma revenues and EBITDAC (including minimal expected synergies) for the trailing 12 months ended 30 June 2023 were approximately $104 million and $37 million, respectively. Under the terms of the agreement, Gallagher will acquire the assets of Eastern Insurance for $510 million, net of agreed seller-funded expenses.
Headquartered in Rolling Meadows, Illinois, Arthur J. Gallagher & Co. (NYSE:AJG) is a global provider of insurance brokerage, risk management and consulting services. Gallagher provides these services in approximately 130 countries around the world through its own offices and a network of correspondent brokers and consultants.
