Today’s issue of WorkCompRecap features some M&A news, with the announcement from Arthur J. Gallagher & Co that it has signed a definitive agreement to acquire Natick, MA-based Eastern Insurance Group, LLC, a subsidiary of Eastern Bank.
Eastern President & CEO Tim Lodge and his team will remain in their current location under the direction of Patrick Kennedy, head of Gallagher’s Northeast region retail property/casualty brokerage operations, and John Neumaier, head of Gallagher’s East region employee benefits consulting and brokerage operations. Eastern Insurance’s pro forma revenues and EBITDAC (including minimal expected synergies) for the trailing 12 months ended June 30, 2023 were approximately $104 million and $37 million, respectively. Under the agreement, Gallagher will acquire the assets of Eastern Insurance for consideration of $510 million net of agreed seller funded expenses.