Arthur J. Gallagher Expands Southwest Presence With Acquisition

ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co., a global insurance brokerage and risk management services firm, has announced the acquisition of Litchfield Special Risks, Inc. (LSR), a Texas-based wholesale insurance broker and managing general agency. The acquisition aims to enhance Gallagher’s presence in the Southwest US, particularly in the transportation and property/casualty sectors.

LSR, which operates out of El Paso, Texas, has built a reputation for its specialized focus on transportation and property/casualty solutions, catering to retail agents in Texas and the surrounding regions. The financial terms of the deal, completed today, have not been made public. This acquisition aligns with AJG’s growth strategy, which has helped maintain its strong market position, reflected in its consistent dividend payments for 41 consecutive years, as noted by InvestingPro.

Following the acquisition, Bill Brenton and his team will continue to operate from their El Paso location. They will now report to Ash Thomas, VP-Western Region for Risk Placement Services, Inc. (RPS), Gallagher’s U.S. wholesale brokerage, binding authority, and programs division. J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co., expressed enthusiasm about the acquisition, stating, "LSR’s market reputation and transportation niche expertise will expand RPS’s capabilities in Texas." He also welcomed Brenton and his associates to the company.

Arthur J. Gallagher & Co., headquartered in Rolling Meadows, Illinois, operates globally, providing insurance brokerage, risk management, and consulting services in approximately 130 countries. The firm trades on the New York Stock Exchange under the ticker NYSE:AJG.

The acquisition is part of Gallagher’s ongoing strategy to grow its service offerings and market reach through strategic purchases. This move is expected to strengthen the company’s resources and expertise in the transportation insurance sector, a critical area for retail agents in the Southwest.

The information in this article is based on a press release statement from Arthur J. Gallagher & Co. In other recent news, Arthur J. Gallagher & Co. has been the focus of several analyst updates following its investor call and ongoing acquisition efforts. Piper Sandler reaffirmed its Overweight rating and set a $350 price target, highlighting the company’s robust financial health and strategic management amid the delayed acquisition of AssuredPartners.

The firm anticipates that Arthur J. Gallagher’s guidance for the first quarter of 2025 will exceed expectations, with interest gained on acquisition funds contributing to margin expansion. Keefe, Bruyette & Woods also adjusted their price target to $314, maintaining a Market Perform rating, while revising their earnings per share estimates due to the anticipated closure of the AssuredPartners acquisition in October.

Evercore ISI increased their price target to $352, maintaining an Outperform rating, and noted improvements in core earnings per share and organic growth. Meanwhile, BMO Capital Markets reiterated an Outperform rating with a $332 price target, expressing confidence in the successful conclusion of the AssuredPartners acquisition.

The regulatory review extension for this acquisition has been unexpected, but analysts believe Arthur J. Gallagher’s market share positions it well for approval. Investors are closely watching these developments, as the acquisition’s outcome could significantly influence Arthur J. Gallagher’s financial performance and market presence.