Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Gallagher Stock Priced at $43.25 to Fund Wesfarmers Deal

Wesfarmers Headquarters in Perth
The Wesfarmers Ltd. logo is displayed outside the Wesfarmers House building, which houses the company's headquarters, in Perth, Australia. Wesfarmers have sold their insurance-brokerage operation to Arthur J. Gallagher & Co. Photographer: Aaron Bunch/Bloomberg

April 11 (Bloomberg) -- Arthur J. Gallagher & Co., the insurance broker expanding beyond the U.S. through acquisitions, sold about $821.8 million of shares in an equity offering to help fund its latest deal.

Gallagher sold 19 million shares at $43.25 apiece, below yesterday’s closing price in New York, the Itasca, Illinois-based company said in a statement distributed by PR Newswire. Morgan Stanley and Bank of America Corp. led the offering.

Chief Executive Officer J. Patrick Gallagher reached a deal April 6 to pay A$1.01 billion ($950 million) to buy the insurance-brokerage operation of Perth, Australia-based Wesfarmers Ltd. The purchase will be the largest by Gallagher, which expanded in the U.K. by buying Oval Group and the Giles Group of Companies.

“This builds up New Zealand in a way that we probably couldn’t have accomplished” over the next decade, J. Patrick Gallagher said in an April 7 conference call. “Same is true with Australia.”

Gallagher closed at $43.66 in New York. That compares with $46.84 on April 4, the last trading day before the deal was announced.

Gallagher has climbed 5.1 percent in the past year, compared with the 26 percent gain of New York-based insurance broker Marsh & McLennan Cos. Brokers help commercial clients purchase coverage from insurers, collecting fees tied to the size of premiums.

Wesfarmers, which started in 1914 as a farmers’ co-operative, is focusing on industries including retail after agreeing in December to sell its underwriting business to Insurance Australia Group Ltd. for A$1.85 billion.

To contact the reporters on this story: Zachary Tracer in New York at ztracer1@bloomberg.net; Narayanan Somasundaram in Sydney at nsomasundara@bloomberg.net

To contact the editors responsible for this story: Dan Kraut at dkraut2@bloomberg.net Dan Reichl, David Scheer

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.