March 4, 2019 by Greg Meckbach
Arthur J. Gallagher & Co. announced Monday it has agreed to buy the global aerospace operations of Jardine Lloyd Thompson Group plc.
Monday’s announcement comes six months after Marsh & McLennan Companies Inc. announced it agreed to acquire JLT, a global commercial insurance brokerage with offices in Canada.
Gallagher’s deal is subject to regulatory approval in Europe but is scheduled to close this spring in connection with the closing of Marsh & McLennan’s acquisition of JLT, Gallagher said Monday.
JLT has aerospace operations in Canada, Britain, the United States, Australia, New Zealand and 10 other countries.
Based near Chicago in Itasca, Ill., Gallagher is the world’s fourth largest commercial property and casualty insurance brokerage.
Gallagher, which has more than 30 locations in Canada, is publicly traded and led by chairman and CEO J. Patrick Gallagher Jr., grandson of company founder Arthur Gallagher.
“The addition of JLT’s global aerospace broking operations will firmly position Gallagher as a leading broker in the extremely attractive and dynamic aviation and aerospace sector,” J. Patrick Gallagher Jr. stated Monday in a release. “The business portfolio is a highly complementary geographic fit with Gallagher’s existing footprint and will provide significant growth opportunities for our international businesses. We look forward to welcoming the team to Gallagher later this spring.”
Once Marsh & McLennan acquires JLT, it could form the world’s largest commercial P&C brokerage, a distinction currently held by Aon plc.
Gallagher recently announced the acquisition of P&C brokerage Jones Brown Inc., which has offices in Vancouver, Calgary, Toronto and Hamilton.
In 2014, Gallagher acquired the majority of Noraxis Capital Corp from Roins Financial Services Ltd. Two years later Gallagher announced the rebranding of the Noraxis brokerages, which included CG&B Group, Stevenson & Hunt, Amherst Commercial Insurance, Bell & Grant, Crain & Schooley, Fraser & Hoyt and Renfrew Insurance and Ranger Insurance.