Gallagher to buy insurance broker Woodruff Sawyer in $1.2 billion deal

(Reuters) — Arthur J. Gallagher & Co. said on Tuesday it would acquire rival Woodruff Sawyer in a $1.2 billion deal, as the insurance broker continues with its acquisition spree to expand its business.

The deal will bolster Gallagher’s management liability, construction, real estate and cyber offerings and also expand its presence in the West Coast region.

Dealmaking activity within the insurance broker industry has ramped up in recent years, as companies look to beef up their presence in the middle-market segment.

Gallagher had also struck a $13.5 billion deal in December to buy insurance broker AssuredPartners.

Woodruff Sawyer provides property and casualty insurance products, employee benefits offerings and risk management services with a focus on middle- and large-market clients.

The San Francisco-based firm’s team of more than 600 employees will work under Peter Doyle, head of Gallagher’s U.S. retail property and casualty brokerage operations.

Woodruff Sawyer’s pro forma revenue was about $268 million for the trailing 12 months ended Dec. 31. The company operates 14 offices in the U.S. and one in the UK.

The deal is expected to close during the second quarter of 2025.

(Woodruff Sawyer is 37th largest broker of U.S. business, according to Business Insurance‘s most recent ranking.)