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Stackhouse deal might influence Gallagher’s 2019 M&A exercise

Stackhouse deal might influence Gallagher’s 2019 M&A exercise


UK retail boss Michael Rea confirms plans to maintain the Stackhouse Poland model and states Gallagher won’t shut down branches or minimize jobs following the deal.

Gallagher UK retail chief government Michael Rea has hailed Stackhouse Poland as a “nice match” which can give Gallagher further scale, after its deal to purchase the dealer was confirmed earlier this week.

“Stackhouse provides us a bodily presence in some cities the place we’re not presently – elements of the South coast, the Isle of Wight and Guildford the place their head workplace is,” Rea informed Insurance coverage Age.

However regardless of there at present being extra offers within the pipeline for Gallagher, the dimensions of Stackhouse might additionally have an effect on the variety of different purchases the enterprise will make this yr.

“Stackhouse Poland is a big transaction and we’ll now mirror on the quantity of exercise that may go into integrating it,” Rea defined.

However he didn’t rule out making offers utterly, including: “We do have companies who’re very eager to promote to us and subsequently we’ll proceed to speak to them. It’s in all probability a query of when slightly than if.”

Integration
In an interview with Insurance coverage Age yesterday (eight January) Stackhouse group CEO Tim Johnson said that the acquisitive enterprise had been in talks with a number of brokers during the last couple of months and that he was eager to proceed the shopping for course of.

Rea commented: “They’ve a few small companies of their pipeline and one of many first jobs we’ll be doing is assembly them and reassuring them that this can be a nice house for his or her shoppers.”

Wanting on the integration course of, Rea famous that there’s a diploma of overlap with regard to workplace places, however maintained there have been no present plans to shut any workplaces because of the deal.

Rea additionally didn’t anticipate any redundancies, stating: “Whenever you purchase a broking enterprise you purchase individuals and their experience and information and their relationships.

“The very last thing that anyone ought to do when shopping for right into a dealer is to eliminate that and our job is to make individuals really feel a part of the Gallagher household.”

In accordance with the CEO the deal is predicted to obtain regulatory approval in late February or early March.

Model
The present plan is to retain the Stackhouse Poland model, which Rea famous was revered out there, notably inside the excessive internet value sector.

“The place a model has resonance and worth the very last thing we’d need to do is to eliminate it,” he continued.

Insurance coverage Age beforehand reported that Stackhouse government chairman Jeremy Cary was set to retire from the enterprise sooner or later within the close to future.

Rea commented that Cary, together with director James Agnew and Johnson, had constructed a “implausible enterprise with a terrific franchise and as they’ve grown they’ve managed to retain a tradition that’s the envy of the market”.

Tradition
He added: “That’s the legacy that Jeremy will depart and our job is to nurture that tradition and construct on it. That’s the dedication I’ve given to the Stackhouse Poland shareholders.”

The tradition can also be what drew Gallagher to Stackhouse to start with, together with its specialisms and a “high quality management group”.

“They’re very complementary to our enterprise and a business department community so in some ways they feel and appear lots just like the retail enterprise of Gallagher within the UK,” Rea stated.

He concluded: “They both construct our presence in our present markets or they provide us a much bigger presence the place we’re a bit underweight, together with HNW and extremely HNW. They’ll be a unbelievable version to our secure of specialisms.”

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