ITASCA, Ill., Oct. 1 /PRNewswire-FirstCall/ -- Arthur J. Gallagher & Co. (NYSE: AJG) announced that today its subsidiary, Gallagher Bassett Services, Inc., completed the previously announced agreement to acquire substantially all the third-party administrator (TPA) assets and managed care service operations of GAB Robins North America, Inc.
After the transition period, Gallagher expects this transaction to generate approximately $45 million to $50 million in revenue, and $9 million to $11 million in EBITDAC, annually.
Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 15 countries and does business in more than 100 countries around the world through a network of correspondent brokers and consultants.
This press release contains forward-looking statements relating to future results, including statements regarding future revenue and EBITDAC growth. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expected, including acquisition integration risks, changes in worldwide and national economic conditions and changes in the insurance markets generally. Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1, "Business – Information Concerning Forward-Looking Statements" and Item 1A, "Risk Factors", of Gallagher's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 for a more detailed discussion of these and other factors. This press release refers to EBITDAC, a non-GAAP measure, which Gallagher defines as earnings from continuing operations before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables. A description of the purpose of this measure and a reconciliation of EBITDAC to the most comparable GAAP measure are available on Gallagher's website at www.ajg.com.
Contact: Marsha Akin - Investor Relations
SOURCE Arthur J. Gallagher & Co.