Gallagher buys Wesfarmers broking business

Arthur J Gallagher has bought Wesfarmers broking businesses for A$1.1bn (£615.9m).

The deal includes Oamps businesses in the UK and Australia, as well as Crombie Lockwood in New Zealand, including the associated premium funding companies.

The deal is subject to regulatory approval and is expected to be completed in Q2 or Q3 2014.

In the year ended 30 June 2013 Wesfarmers’ broking businesses generated A$331.1m in revenue and currently employs around 1,700 members of staff across the UK, Australia and New Zealand.

UK revenue accounted for about 8-10% of the group revenue for that period.

Arthur J Gallagher president and chief executive Patrick Gallagher said: “This acquisition represents an important strategic step for our company by significantly expanding our presence in Australia and New Zealand. Together we will have a tremendous platform for growth as we expand throughout Australasia.

“Our combined operations will become one of the largest insurance brokers in Australia and New Zealand. Their focus on middle-market clients aligns well with our global client base and will provide us opportunities to bring our full range of services to their clients and prospects. We are proud that this outstanding team of professionals will be joining the Gallagher family.”

Wesfarmers insurance broker business executive chairman Steve Lockwood said: “This is genuinely exciting for our people and clients to join with an organisation that is like-minded in culture and client focus. Our combined operations and scale will be a great benefit to our clients.”