Gallagher buys Bollington

Arthur J. Gallagher has struck a deal to buy Bollington Wilson, Insurance Age can reveal.

Bollington Wilson was created in 2017 with the support of Inflexion following the merger of two long-standing North-West insurance brokers, Bollington Insurance Brokers and F Wilson Insurance Brokers.

GWP
When Inflexion invested in Bollington it reported a GWP of £120m annually. Since Inflexion backed the North West-based broker it has increased its gross written premium and has completed five deals since December 2019, most recently acquiring £25 GWP Watson Laurie. At the time CEO, Paul Moors, said the business was looking at five further deals.

It is believed that Inflexion sold Bollington for 5x its initial outlay.

Prior to the Inflexion investment the management of Bollington conducted an MBO from Groupama in 2013 backed by Talbot Deane Investments. 

The Group has since grown organically and via strategic acquisition, operates across seven offices and employs more than 400 people. 

Gallagher said that post-completion of the sale, Bollington will become part of Gallagher’s UK Retail Division, which looks after the risk management and insurance needs of over one million customers through a regional network of offices based across the UK.

Michael Rea, CEO of Gallagher’s UK Retail Division, said: “Bollington is a hugely-respected business and culturally is an excellent fit with Gallagher. This thriving business has strong capability and an impressive portfolio of specialisms that are complementary to our existing business lines, and provides us with additional scale in the regional commercial broking sector.

“Its base in the North West of England will supercharge our presence in the region, and add further depth to our existing UK wide coverage through our Gallagher UK branch network. We have been particularly impressed with the team’s entrepreneurial mindset and focus on client service, both of which are fundamental to our way of doing business here at Gallagher. I look forward to working with Paul and the wider team as we join the businesses together.”

Results
In its most recent set of results for 2019 Bollington reported a profit and turnover surge. It revealed that profit-before-tax went up to £4.6m, an increase on the £3.1m filed in 2018. Gross profit was £20.5m with administrative expenses hitting £15.9m. In 2018 gross profit was £13.5m and admin expenses were £10.4m.

Turnover was broken down into commercial, which contributed £11.9m, direct (£7.7m) and premium finance which created revenue of £3.9m.Commenting on the agreement to acquire Bollington,

Partners
Paul Moors, Group CEO of Bollington, added: “It was clear from the start that we had found a fantastic partner in Gallagher. Michael and his team spoke the same language as us and Gallagher’s focus on employing and developing its employees to provide great client service fits well with our ethos.

“Having led Bollington for over 20 years, I am delighted that our business will become part of such a market-leading global broker, and this partnership will enable us to continue our track record for growth, and provide a springboard for further success.”

The transaction is subject to regulatory approval and is expected to close in the first quarter of 2021.

Gallagher’s most recent large scale deal was its £264.5m buy of Stackhouse Poland announced in January 2019. 

Simon Turner, managing partner, Inflexion commented: “Bollington Wilson has delivered impressive growth over the past three years.

“Paul and the team successfully integrated two businesses and then embarked on an ambitious buy-and-build strategy which led to Bollington Wilson becoming a real leader in the UK independent insurance brokerage space. We would like to wish Paul and his team all the best for their future growth.”

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