ITASCA, Ill., Sept. 29 /PRNewswire-FirstCall/ -- Arthur J. Gallagher & Co. today announced that its subsidiary, Gallagher Bassett Services, Inc., has signed a definitive agreement to acquire substantially all the third-party administrator (TPA) assets and managed care service operations of GAB Robins North America, Inc. and its subsidiary MedInsights, Inc. (collectively GABR). This transaction does not include GABR's property/casualty loss adjusting operations. Terms were not disclosed. The transaction is expected to close in October 2010.
With roots dating back to the 1880s, GABR provides third-party claims and risk management services, primarily for workers' compensation, general liability and commercial auto insurance segments, to more than 200 self-insured commercial customers throughout the U.S. across a wide variety of industries including many Fortune 1000 companies. Its managed care provider offers case management and cost-containment services, including medical bill review, nurse case management and pharmacy benefit management for self-insured workers' compensation cases.
It is expected that the transaction will generate approximately $45 million to $50 million in annualized revenue. Over 420 GABR professionals will combine with Gallagher Bassett's property/casualty TPA and managed care operations and will operate under the direction of Gallagher Bassett's President, Scott R. Hudson.
"We believe that Gallagher Bassett is the best property/casualty claims administrator in the world, and we are fully dedicated to delivering a level of client service that is second to none," said J. Patrick Gallagher, Jr. Chairman, President and CEO. "The strategic combination of these two great organizations underscores our commitment to invest in and grow this business. We look forward to working with our newest associates, and we welcome them to our Gallagher family of professionals."
"At Gallagher Bassett, client service is our top priority. So when we saw an opportunity to acquire an organization with the same focus on high-quality service, it was an easy decision. Combining our teams will enable us to expand our customer base and add talented staff to our highly-experienced group of professionals," said Scott Hudson. "GABR fits well within our business culture, and together we will continue to strengthen our position as the best TPA provider in the property/casualty space."
Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 15 countries and does business in more than 100 countries around the world through a network of correspondent brokers and consultants.
This press release contains forward-looking statements relating to future results, including statements regarding future revenue growth. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expected, including acquisition integration risks, changes in worldwide and national economic conditions and changes in the insurance markets generally. Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1, "Business - Information Concerning Forward-Looking Statements" and Item 1A, "Risk Factors", of Gallagher's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 for a more detailed discussion of these and other factors.
Contact: Marsha Akin Investor Relations (630) 773-3800 - marsha_akin@ajg.com
Arthur J. Gallagher & Co.
CONTACT: Marsha Akin, Investor Relations of Arthur J. Gallagher & Co.,
+1-630-773-3800, marsha_akin@ajg.com
Web Site: http://www.ajg.com/
