Arthur J. Gallagher & Co. has completed its $1.2 billion acquisition of San Francisco-based insurance broker Woodruff Sawyer.
The deal, first announced in March, followed a competitive process in which Gallagher moved ahead of other interested parties, including WTW and Brown & Brown.
The acquisition is part of Gallagher’s broader strategy to expand its property and casualty operations and increase its presence in sectors such as management liability, construction and real estate. Woodruff Sawyer will operate under Gallagher’s US retail property and casualty brokerage division. Its chief executive officer, Andy Barrengos, will report to Peter Doyle, who leads that unit.
Woodruff Sawyer provides commercial property/casualty insurance, employee benefits, and risk management services. It focuses on middle and large-market clients and operates from 14 offices across the United States, as well as one location in the United Kingdom. The firm employs more than 600 people.
Gallagher stated that Woodruff Sawyer recorded estimated pro forma revenue of $268 million for the 12 months ending December 31, 2024. Its earnings before interest, taxes, depreciation, amortization, and coronavirus (EBITDAC), including anticipated synergies, were approximately $88 million. The transaction values the firm at around 4.5 times revenue and 13.6 times EBITDAC, aligning with recent market benchmarks in the brokerage sector.
Integration and retention expenses tied to the deal are projected at $150 million over a three-year period. Gallagher indicated it plans to retain Woodruff Sawyer’s employees and leadership team as part of the integration.
This acquisition follows Gallagher’s $13.5 billion purchase of AssuredPartners in late 2024 and marks another step in its efforts to expand through targeted acquisitions. The company has said that Woodruff Sawyer’s existing capabilities, particularly in areas such as directors & officers liability and niche risk advisory, will complement its current offerings.
Founded in 1918, Woodruff Sawyer has long operated as an independent firm in the insurance brokerage market. Its integration into Gallagher is expected to broaden the group’s client reach and industry coverage, particularly on the US West Coast.
