Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

Arthur J. Gallagher & Co. Signs Agreement To Acquire Canadian Insurance Broker Noraxis

Gallagher Will Review Details During a Conference Call on May 20, 2014


News provided by

Arthur J. Gallagher & Co.

May 19, 2014, 04:15 ET

Share this article

Share toX

Share this article

Share toX

ITASCA, Ill., May 19, 2014 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced that it has signed an agreement to acquire Noraxis Capital Corporation.  Upon completion of the transaction, Gallagher will hold approximately 87% of the equity interests in Noraxis.  The remaining 13% will continue to be owned by various management employees of Noraxis.  The transaction is subject to regulatory approval and is expected to close in July of 2014.

Gallagher will hold a webcast conference call on Tuesday, May 20 at 9:00 a.m. Eastern/8:00 a.m. Central to review this acquisition.  To listen to this call and view the slide presentation, please go to ajg.com/webcast.   The call will be available for replay at the same website for not less than 90 days.

Noraxis is a top-five Canadian insurance broker that provides retail commercial, personal and employee benefits insurance products and services.  Noraxis generated nearly C$125 million in revenue for the year ended December 31, 2013, has more than 650 employees and operates out of 23 offices across Alberta, Manitoba, New Brunswick, Nova Scotia and Ontario.

"In Noraxis, we have found our ideal Canadian partner and together we now have a solid platform for organic growth and a leadership team that will continue to attract new merger partners," said J. Patrick Gallagher, Jr., Chairman, President and CEO.  "By joining with Gallagher, Noraxis will be able to leverage our sales and service capabilities across Canada.  In particular, our combined expertise in areas such as energy, construction and mining align well with the growth opportunities in the Canadian market.  We are extremely pleased to welcome the Noraxis team to our Gallagher family of professionals."

Ken Keenan, Noraxis Group President, said: "From our earliest engagement, there has been genuine excitement right across our team at the prospect of joining Gallagher.   As a business built by acquiring brokers known to be the best in their geography and niche, we share an obvious client-first service ethos and entrepreneurial culture with Gallagher.  This transaction is great news for all of our staff and our insurance markets.  Most importantly, our clients can now look forward to accessing Gallagher's global resources and expertise, whilst continuing to receive the high quality and expert service offered from their local Canadian broker and account team."

"By adding Canada to our recent expansion in Australia, New Zealand and the U.K., we are now well positioned in those countries to replicate our successful acquisition strategy of partnering with smaller, family-owned, and entrepreneurial agents and brokers," added Mr. Gallagher.  "In each of the countries, we believe there will continue to be a wave of consolidation opportunities like we are seeing in the United States.  Independent agents and brokers understand that Gallagher can provide their employees and customers with the very best sales tools, high-quality service capabilities, efficient systems and productive processes afforded by scale.  All of these advantages are embedded in our rock-solid sales culture, which recognizes the importance of our customers and our insurance carrier markets."  

Benefits of the Noraxis acquisition are expected to include:

  • Establishing Gallagher as a top-five retail broker in Canada;
  • Providing a significant Canadian platform for future growth;
  • Combining two similar entrepreneurial sales cultures;
  • Sharing a client focus that is primarily middle-market;
  • Complementing and expanding specialized niche practice groups and capabilities;
  • Providing opportunities to establish new MGA capabilities;
  • Combining strong production talent that builds on Gallagher's successful sales team platform;
  • Providing cross-selling opportunities;
  • Driving longer-term operational efficiencies through a consolidated platform;
  • Establishing Gallagher as a major player in the Canadian employee benefits business; and
  • Providing Gallagher's existing Canadian employee benefits businesses with a strong growth platform.

Noraxis Operations

The information below summarizes Noraxis' commercial, personal and employee benefit operations which operate under several different names:  Renfrew (mostly in Alberta), Ranger (mostly in Manitoba), BF&G Group (mostly in Nova Scotia and New Brunswick), and CG&B, Stevenson & Hunt, and Atrens Counsel (mostly in Ontario).  The Noraxis operations will continue to be managed by Mr. Keenan.

Commercial Lines:

Noraxis' commercial lines middle-market business currently brokers nearly 40,000 policies and is expected to generate C$92 million of annualized revenues in 2015 .  This commercial lines business is well aligned with Gallagher's expertise groups with a strong emphasis on several complementary industries such as mining, energy, real estate, transportation, marine, media and condos.  The wider clientele base will also provide cross-selling opportunities to expand into specialties such as professional indemnities and financial lines.  Their focus on middle-market clients, along with their larger scale and brand recognition, will provide opportunities to bring Gallagher's full range of products and services to their existing clients and prospects. 

Personal Lines:

The personal lines business currently brokers over 60,000 policies and is expected to generate C$27 million in annualized revenues in 2015 through middle-market and high-net-worth clients, which fits well with Gallagher.  There are further opportunities for expansion in the Noraxis' personal lines business by utilizing Gallagher's e-commerce distribution model.

Employee Benefits:

Noraxis' employee benefits business is expected to generate C$19 million in annualized revenues in 2015.    The additional scale provides a larger geographic platform upon which Gallagher can expand its employee benefits consulting and brokerage services.  Also, as the Canadian demand increases for less traditional and more sophisticated employee benefits services, this wider distribution system will provide opportunities for Gallagher to bring significant defined contribution consulting capabilities to new and existing Canadian clients.

Financial Terms (U.S. Dollar amounts using recent exchange rates)

Gallagher is paying net consideration of C$422 million ($388 million) for its 87.1% interest.  In 2015, Gallagher expects results from the Noraxis operations as follows:


Total Noraxis

Gallagher's Share at 87.1%

Revenues

C$138

C$120

US$110

EBITDAC after synergies

C$52

C$45

US$42

EBITDAC after synergies is before integration costs which are expected to range between C$2 million to C$3 million per quarter through 2015.  Gallagher will report 12.9% of Noraxis' net after-tax profits as non-controlling interest when computing GAAP earnings per share.  Gallagher expects to finance the transaction using mostly additional long-term borrowings and its line of credit.  This transaction is expected to result in earnings accretion of $0.07 per share in 2015 and also should also generate another $0.03 cents per share of earnings from our ability to use additional tax credits.

Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 25 countries and offers client-service capabilities in more than 140 countries around the world through a network of correspondent brokers and consultants.

Information Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipates," "believes," "contemplates," "see," "should," "could," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements.  Examples of forward-looking statements include, but are not limited to, statements regarding integration activities, future revenue and earnings impact, the size and status of the combined organization, the impact on our ability to attract and retain producers and leaders within the organization, cross-selling and expense saving opportunities, the ability of the combined business to continue to attract, execute and integrate future bolt-on acquisitions, expected levels of growth within the acquired business, our expectation regarding future platform acquisitions, drivers of organic growth and anticipated future results or performance of any segment or the Company as a whole.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include changes in worldwide and national economic conditions (including an economic downturn and uncertainty regarding the Euro zone), changes in premium rates and in insurance markets generally, changes in the insurance brokerage industry's competitive landscape, unexpected acquisition opportunities, unexpected regulatory changes, and the difficulties inherent in combining the cultures and systems of different companies.

Please refer to Gallagher's filings with the SEC; including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2013, and the prospectus supplement filed on April 11, 2014 for a more detailed discussion of these and other factors that could impact its forward-looking statements.

Information Regarding Non-GAAP Measures

This press release refers to EBITDAC, a measure not in accordance with, or an alternative to, the GAAP information provided herein. EBITDAC is defined as earnings from continuing operations before interest, income taxes, depreciation, amortization and the change in estimated acquisition earn out payables. Gallagher believes EBITDAC provides a meaningful representation of its operating performance and improves the comparability of results between periods by eliminating the impact of certain items that have a high degree of variability.  The most directly comparable GAAP measure is net earnings.  Please see "4th Qrtr 2013 Reconciliation of Non-GAAP Measures and Supplemental Quarterly Financial Data" on Gallagher's website at www.ajg.com under "Investor Relations" for the purpose and an example of reconciliations of this measure.

Contact:  Marsha Akin
Director – Investor Relations
630-285-3501 and/or [email protected]

SOURCE Arthur J. Gallagher & Co.

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED

Modal title

Also from this source

Arthur J. Gallagher & Co. Announces Third Quarter 2025 Earnings Release And Conference Call Date

Arthur J. Gallagher & Co. (NYSE: AJG) will release its third quarter 2025 earnings after the market closes on Thursday, October 30, 2025. A...

Arthur J. Gallagher & Co. Acquires Bremer Insurance Agencies, Inc.

Arthur J. Gallagher & Co. Acquires Bremer Insurance Agencies, Inc.

Arthur J. Gallagher & Co. today announced the acquisition of St. Paul, Minnesota-based Bremer Insurance Agencies, Inc. Terms of the transaction were...

More Releases From This Source

Explore

Banking & Financial Services

Banking & Financial Services

Insurance

Insurance

Acquisitions, Mergers and Takeovers

Acquisitions, Mergers and Takeovers

Conference Call Announcements

Conference Call Announcements

News Releases in Similar Topics

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2025 Cision US Inc.