Daytona’s Brown & Brown closes on biggest acquisition
Jan 11, 2012
The following article was published in the Daytona Beach News-Journal on January 11, 2012:
Brown & Brown closes on biggest acquisition
By Tom Knox
Brown & Brown Inc. has completed its biggest acquisition ever — the $395 million purchase of San Diego-based Arrowhead General Insurance Agency.
Daytona Beach-based Brown & Brown, which announced its intention to acquire the company late last month, completed the deal Monday.
Brown & Brown bought Arrowhead using $195 million of its own cash. It borrowed the other $200 million.
An additional payment of up to $5 million could be made three years after the deal’s closing, which would push the acquisition to $400 million.
Cory Walker, Brown & Brown’s chief financial officer, said in December that Arrowhead has 510 workers who will join Brown & Brown’s nationwide workforce of 5,500 employees.
The completed deal increases Brown & Brown’s annual revenue and employee headcount by about 10 percent. Brown & Brown expects to generate nearly $1 billion in net revenue by this year’s end.
Arrowhead, like Brown & Brown, is an insurance agency that works with commercial and residential clients. Arrowhead was founded in 1983. Brown & Brown was founded in 1939.
Find this article here: http://www.news-journalonline.com/business/local-business/2012/01/11/brown-brown-closes-biggest-acquisition.html