Brown & Brown stock (NYSE:BRO) is up about 1.9% on Monday as the company has acquired that it will acquire another insurance business as it seeks to expand its portfolio in the industry.
The company said that it has agreed to acquire the assets of Hays Companies and its insurance operations. The deal will see it buy the Minnesota-based insurance broker that has amassed $200 million in revenues and it marks the largest-ever acquisition by Brown & Brown in its 75-year history.
Hays Companies has its headquarters in Minneapolis and the company is comprised of more than 700 risk management and employee benefits professionals in 32 locations across 21 states. The Hays Companies specializes on a number of segments of insurance, including risk management, commercial insurance, employee benefits, consulting services, specialty programs and private client services.
The firm was ranked as #20 on Insurance Journal’s list of Top 100 Property/Casualty Independent Agencies with annual revenues that were close to $200 million, with more than $90 million of that in P/C insurance. The deal is slated to be closed in November 2018.
Hays Companies will retain its name, while its executive group and account teams will not change, the company claims. The company will operate as a region inside Brown & Brown Retail, which is one of its four divisions. The Retail division brought in $940 million in revenues in 2017, which marked 50% of the company’s total.
BRO stock is up about 1.9% on Monday.