Arthur J. Gallagher & Co. Signs Agreement To Acquire Cadence Bank Subsidiary Cadence Insurance, Inc.; Gallagher To Acquire The Stock Of Cadence Insurance For $749M
Portfolio Pulse from Benzinga Newsdesk
Arthur J. Gallagher & Co. has signed an agreement to acquire Cadence Insurance, Inc., a subsidiary of Cadence Bank, for $749 million. The deal will make Gallagher the preferred insurance broking partner of Cadence Bank. The acquisition cost is net of Gallagher's discounted tax benefit of approximately $155 million. Integration and management retention costs are expected to total $70 million over the next 3 years.
October 24, 2023 | 12:11 pm
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NEUTRAL IMPACT
Arthur J. Gallagher & Co.'s acquisition of Cadence Insurance could potentially expand its client base and increase revenues, but it also comes with significant costs.
The acquisition could potentially increase Arthur J. Gallagher & Co.'s revenues by expanding its client base. However, the significant acquisition, integration, and management retention costs could impact its short-term profitability.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Cadence Bank's sale of its subsidiary, Cadence Insurance, to Arthur J. Gallagher & Co. could potentially streamline its operations and provide a significant cash influx.
The sale of Cadence Insurance could potentially streamline Cadence Bank's operations by allowing it to focus on its core banking business. The sale could also provide a significant cash influx, which could be used for further investments or to strengthen its balance sheet.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100