Arthur J. Gallagher & Co has reached agreement to buy rival HR and employee benefits consultancy Buck in a $585m (£481m) deal.
Under the agreement, Gallagher will acquire the partnership interests of BCHR Holdings, trading as Buck and its subsidiaries, for a gross consideration of $660m or approximately $585m net of agreed seller funded expenses and net working capital, the firm announced.
The transaction, expected to close during the first half of 2023, is subject to regulatory approvals.
Buck provides retirement, HR and employee benefits consulting and administration services. The organisation’s history dates back more than 100 years, serving clients across a range of industries throughout the US, Canada and the UK.
Patrick Gallagher, Jr., chairman, president and CEO of Gallagher, said: “Providing a comprehensive suite of products and services that allows employers to attract, engage and retain talent is at the heart of Gallagher Benefit Services’ mission and our global Gallagher Better Works value proposition.
“Through the complementary strengths of Buck’s defined benefit offerings, investment consulting, digital employee engagement platform and international footprint, the acquisition will broaden, deepen and enhance our client offerings.
“I look forward to welcoming the 2,300 new colleagues joining us as part of this transaction to our growing Gallagher family of professionals.”
In a separate statement Jack Freker, CEO of Buck, added he was delighted to announce the “exciting and noteworthy milestone” for the consultant.
“Buck is thrilled to be bringing our industry-leading capabilities to Gallagher’s best-in-class organisation,” he said.
“Together, we’ll continue to build upon our excellent market reputations, breadth of talent, commitment to DE&I, and client-first mindset as we serve many of the world’s leading corporations and brands.
“We could not have achieved this result without the dedication of our exceptional global workforce.”