Brown & Brown, Inc. announces sale of certain third-party administer businesses and enters into long-term strategic relationship with Davies Group Ltd.
31 Oktober 2023 - 10:30PM
Brown & Brown, Inc. announces sale of certain third-party
administer businesses and enters into long-term strategic
relationship with Davies Group Ltd.
J. Scott Penny, chief acquisitions officer of Brown & Brown,
Inc. (NYSE:BRO), today announced an agreement with Davies Group
Ltd. (“Davies”) that includes the sale of four third-party
administrator (“TPA”) businesses and a long-term strategic
commercial relationship. The transaction is expected to close in
December of 2023, subject to certain closing conditions.
The four claims and services businesses to be
acquired by Davies include American Claims Management (ACM) (a
TPA), Preferred Governmental Claims Services (PGCS) (a claims
management business specializing in Florida governmental and
municipality agencies), USIS (a leading supplier of managed care
services and TPA for workers’ compensation and liability claims)
and ICA (a premier independent property adjusting firm)
(collectively, the “TPA Operations”). All 600 teammates in the TPA
Operations will be transitioning to the Davies team as part of this
transaction and will continue to serve their valuable customers and
carrier partners as they do today as part of Brown & Brown.
Further, Brown & Brown is establishing a long-term commercial
relationship with Davies to leverage their claims services
capabilities to enhance Brown & Brown’s core brokerage and
programs operations.
Chris Walker, president of the National Programs
segment, stated, “Brown & Brown has had a working relationship
with the Davies organization for many years. As they began to look
at expanding their presence in the United States, there was a
natural opportunity to engage our team. Through our discussions, we
determined that we had an opportunity to enhance both of our
organizations through a strategic transaction. Davies is best
positioned to invest the necessary resources to grow these TPA
businesses, from technology enhancement to training and development
opportunities for teammates.”
“We are thrilled to sign this deal with Brown
& Brown and are excited about the 600 incredibly talented
colleagues that will be joining the Davies Group,” said Dan
Saulter, group CEO of Davies. “This transaction enables us to
invest and grow ACM, PGCS, USIS and ICA while building a strategic
relationship with Brown & Brown to support their business with
claims and more comprehensive solutions as they continue to grow
their business.”
The acquired businesses represent approximately
$100 million of annual revenue and the transaction will generate
purchase proceeds in the range from $185 million to $205
million.
About Brown & BrownBrown
& Brown, Inc. (NYSE: BRO) is a leading insurance brokerage
firm, delivering risk management solutions to individuals and
businesses since 1939. With 16,000+ teammates in 500+ locations
worldwide, we are committed to providing innovative strategies to
help protect what our customers value most. For more information or
to find an office near you, please visit bbinsurance.com.
About Davies Davies delivers
specialist professional services and technology solutions across
the risk and insurance value chain, including excellence in claims,
underwriting, distribution, regulation and risk, customer
experience, human capital, digital transformation and change
management. Their global team of more than 8,000 professionals
operates across ten countries, serving more than 1,500 insurance,
financial services, public sector, and other highly regulated
customers. In the last five years, Davies has executed a strategy
of adding new capabilities, investing in technology and
transformation, and expanding into new geographic
markets. More information about the Davies Group is available
at www.davies-group.com.
This press release may contain certain
statements relating to future results which are forward-looking
statements, including those associated with this acquisition. These
statements are not historical facts but instead represent only
Brown & Brown’s current belief regarding future events, many of
which, by their nature, are inherently uncertain and outside of
Brown & Brown’s control. It is possible that Brown &
Brown’s actual results and financial condition may differ, possibly
materially, from the anticipated results and financial condition
indicated in these forward-looking statements. Further information
concerning Brown & Brown and its business, including factors
that potentially could materially affect Brown & Brown’s
financial results and condition, as well as its other achievements,
is contained in Brown & Brown’s filings with the Securities and
Exchange Commission. Such factors include those factors relevant to
Brown & Brown’s consummation and integration of the announced
acquisition, including any matters analyzed in the due diligence
process, and material adverse changes in the business and financial
condition of the seller, the buyer, or both, and their respective
customers. All forward-looking statements made herein are made only
as of the date of this release, and Brown & Brown does not
undertake any obligation to publicly update or correct any
forward-looking statements to reflect events or circumstances that
subsequently occur or of which Brown & Brown hereafter becomes
aware.
For more information:
R. Andrew WattsChief financial officer(386) 239-5770
Brown and Brown (TG:BTW)
Historical Stock Chart
Von Aug 2024 bis Sep 2024
Brown and Brown (TG:BTW)
Historical Stock Chart
Von Sep 2023 bis Sep 2024