- Arthur J. Gallagher (NYSE:AJG) expects to finance its $3.57B acquisition of of certain Willis Towers Watson (NASDAQ:WLTW) assets with a combination of long-term debt, short-term borrowings, free cash, and common equity.
- Separately, the company says it will offer 9M shares of common stock in a public offering; plans to grant over-allotment option for up to an additional 1.35M shares.
- Overall, the acquisition expands its global value of its reinsurance brokerage and the global footprint in retail property casualty and health & benefits brokerage.
- Adds to specialty operations such as energy, construction, cyber, space, and aerospace products.
- And gives to AJG a broad suite of analytics capabilities including catastrophe modeling, dynamic financial analysis, rating agency analysis and capital modeling.
- AJG shares edge up 0.1% in premarket trading.
- The company expects to keep its investment-grade debt rating.
- Sees non-recurring integration costs of ~$350M and expects the integration to take about three years.
- Expects the transaction to add 9%-11% to AJG's 2020 adjusted EPS, excluding earnings from clean-energy investments.
- Earlier, Aon and Willis Towers confirm deal to sell assets to Arthur J. Gallagher for $3.57B