American insurance brokerage firm Arthur J. Gallagher & Co has agreed to acquire the global aerospace operations of Jardine Lloyd Thompson Group (JLT).
The sale of global aerospace businesses is necessary for JLT to complete the regulatory requirements of the European Commission related to the acquisition of Marsh & McLennan Companies.
Pursuant to the terms of the agreement, Arthur J. Gallagher will acquire all assets within JLT’s global aerospace retail and wholesale insurance broking division, which includes operations in the UK, the US, Canada, New Zealand, Australia, and 10 other countries in Europe, Latin America and Asia.
The transaction also includes acquisition of the assets of Hayward Aviation, a UK insurance broker which offers aviation coverage to high-net worth individuals and smaller airlines.
Gallagher will absorb nearly 250 staff from JLT’s global aerospace division, including nearly 100 employees within JLT’s London Market operations, thereby becoming part of Gallagher’s existing aviation division.
Arthur J. Gallagher & Co chairman, president and CEO J. Patrick Gallagher, Jr., said: “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.
“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.”
Subject to European Commission approval, the transaction is expected to close during this spring.