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Gallagher’s buys stake in WA brokerage

Global brokerage Arthur J Gallagher has acquired a 40% stake in WA broker Specialised Broking Associates (SBA).

While the Sydney-based local branch of Arthur J Gallagher declined today to comment on the acquisition, the parent company said in a statement from Chicago that SBA will continue to operate from its current headquarters in Perth. The terms of the purchase have not been disclosed.

SBA, which specialises in the energy, construction and corporate sectors, will now trade under the name SBA Gallagher.

President and CEO J Patrick Gallagher Jr says the minority stake is part of a continuous global expansion effort to build “relationships with strong international brokers that we can develop into solid strategic partners”.

SBA CEO Bill Grierson said as the financial services market changes globally, the consolidation of smaller firms with major internationals “will lead the way as a market trend over the next few years”.

Mr Grierson told insuranceNEWS.com.au this may be prompted by buyers looking for “sturdy balance sheets” that international players could provide.