Arthur J. Gallagher & Co. announced Monday that it acquired Tompkins Insurance Agencies, a Batavia, New York-based unit of Tompkins Financial.
Gallagher paid $223 million for the unit, which gives Tompkins Financial a pretax gain of $183 million, Tompkins said. Gallagher said it paid $183 million, “which is net of Gallagher’s discounted tax benefit associated with the transaction of approximately $40 million.”
Tompkins Insurance Agencies’ pro forma revenues and earnings before income tax, depreciation and amortization for the trailing 12 months ended June 30 were approximately $40 million and $16 million, respectively.
Tompkins Insurance Agencies President David Boyce and about 150 employees will remain in their current location under the direction of Brendan Gallagher, head of Gallagher’s Northeast region retail property/casualty brokerage operations, and Scott Sherman, head of Northeast region employee benefits consulting and brokerage operations.
The deal strengthens Gallagher’s brokerage capabilities in the region across commercial and personal lines and employee benefits, Chairman and CEO J. Patrick Gallagher Jr. said in a statement.
Rolling Meadows, Illinois-based Gallagher is the third-largest brokerage of U.S. business, according to the most recent Business Insurance rankings. Tompkins was 93rd in the ranking.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.