Arthur J. Gallagher & Co. Signs Acquisition Agreement With GAB Robins North America, Inc.

Arthur J. Gallagher & Co. AJG today announced that its subsidiary, Gallagher Bassett Services, Inc., has signed a definitive agreement to acquire substantially all the third-party administrator (TPA) assets and managed care service operations of GAB Robins North America, Inc. and its subsidiary MedInsights, Inc. (collectively GABR). This transaction does not include GABR's property/casualty loss adjusting operations. Terms were not disclosed. The transaction is expected to close in October 2010. With roots dating back to the 1880s, GABR provides third-party claims and risk management services, primarily for workers' compensation, general liability and commercial auto insurance segments, to more than 200 self-insured commercial customers throughout the U.S. across a wide variety of industries including many Fortune 1000 companies. Its managed care provider offers case management and cost-containment services, including medical bill review, nurse case management and pharmacy benefit management for self-insured workers' compensation cases. It is expected that the transaction will generate approximately $45 million to $50 million in annualized revenue. Over 420 GABR professionals will combine with Gallagher Bassett's property/casualty TPA and managed care operations and will operate under the direction of Gallagher Bassett's President, Scott R. Hudson.