(Bloomberg) — Arthur J. Gallagher & Co. is selling 19 million shares of common stock to help fund the purchase of Wesfarmers Ltd.'s insurance brokering operation, as the buyer extends its growth outside the U.S.
The offering would raise $890 million, based on the April 4 closing price of $46.84 for Gallagher. Morgan Stanley and Bank of America Corp. are leading the offering, Itasca, Illinois- based Gallagher said today in a statement.
Wesfarmers, which operates supermarkets and sells coal, chemicals and industrial equipment, said Gallagher agreed to buy its brokerage operations for A$1.01 billion ($935 million) as the Perth, Australia-based company scales back from insurance. Gallagher has been expanding in countries including the U.K. to add clients and increase business with U.S. customers that operate internationally.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
