Arthur J. Gallagher & Co. has announced a definitive agreement to acquire San Francisco-based insurance brokerage firm Woodruff Sawyer for $1.2 billion (approx. £0.93 billion), prevailing over competing interest from WTW and Brown & Brown. The acquisition expands Gallagher’s presence in the property and casualty sector while strengthening its capabilities in management liability, construction, and real estate. The deal is expected to close in the second quarter of 2025, pending regulatory approval.
Woodruff Sawyer, operating from 14 US offices and one in the UK, serves middle and large-market clients with a range of risk management and insurance solutions. The firm reported estimated pro forma revenues of $268 million for the 12 months ending December 31, 2024, with an EBITDAC margin of 33%.
Gallagher’s acquisition values Woodruff Sawyer at approximately 4.5 times revenue and 13.6 times EBITDAC, aligning with comparable transactions in the brokerage sector.
Integration and retention costs are projected at $150 million over the next three years, with Gallagher aiming to maintain Woodruff Sawyer’s workforce of over 600 employees. The firm has built a strong reputation in Directors & Officers (D&O) liability and risk management, areas that will complement Gallagher’s existing services.
This acquisition follows Gallagher’s $13.5 billion purchase of AssuredPartners in December 2024 and reinforces its expansion strategy. The addition of Woodruff Sawyer strengthens Gallagher’s presence on the West Coast and broadens its ability to serve specialized industries.
Founded in 1918, Woodruff Sawyer has a longstanding reputation for delivering tailored risk management solutions. The firm will operate under Gallagher’s US retail property and casualty brokerage unit, with its leadership team, including CEO Andy Barrengos, reporting to Peter Doyle.
"We have always admired Woodruff Sawyer’s industry expertise and client-focused approach," said J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co. "This acquisition enhances our capabilities and strengthens the value we deliver to clients."
Barrengos added: "Joining Gallagher allows us to expand our expertise and leverage their global resources. We look forward to working together to provide enhanced solutions for our clients."
As the brokerage industry continues to consolidate, Gallagher’s acquisition of Woodruff Sawyer reflects its strategy of acquiring specialized firms to enhance its market position. The deal is expected to provide expanded offerings for clients while maintaining Woodruff Sawyer’s expertise in niche markets.
Regulatory approval and integration efforts will be closely monitored as the transaction moves forward. If completed successfully, the acquisition will further solidify Gallagher’s role as a leading player in the insurance brokerage sector.
