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.

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