Perth-based industrial conglomerate Wesfarmers is expanding its insurance broking credentials with the acquisition of New Zealand’s largest locally owned broker.

The company has bought Crombie Lockwood for an undisclosed sum. MD Richard Goyder says the transaction will help expand Wesfarmers’ influence in the NZ insurance industry.

“The acquisition meets Wesfarmers’ investment hurdles and is expected to be earnings per share accretive (pre-amortisation) in the first full year of ownership,” he said.

Crombie Lockwood will be managed from Wesfarmers’ NZ underwriting business. CEO Steve Lockwood and COO Carl O’Shea will continue in their current roles, and third substantial shareholder Colin Crombie will retire as Chairman.

Mr Lockwood says he is delighted to be moving the company into the Wesfarmers fold.

“Being part of a larger organisation will give greater financial comfort to our clients and more opportunities for our staff while positioning us to capitalise on market opportunities.”

The acquisition still needs to gain the consent of the NZ Overseas Investment Office.