Gallagher to acquire HR and benefits consultancy platform Buck

Arthur J Gallagher & Co. (Gallagher) has agreed to acquire the partnership interests of BCHR Holdings (doing business as Buck) and its subsidiaries, for $660 million.

The agreement adds bSuite, a software platform for benefits administration and employee engagement, to Gallagher’s broad suite of professional services.

The transaction is expected to increase Gallagher’s value proposition within retirement, benefits & HR consulting, administration, and technology, apart from potential cross-selling opportunities.

Buck offers retirement, HR, and employee benefits consulting and administration services throughout the US, Canada, and the UK.

The organization with a diverse client base by both size and industry, employs more than 2,300 people, including over 220 credentialed actuaries.

J Patrick Gallagher, Jr — Gallagher Chairman, President, and CEO said: “Providing a comprehensive suite of products and services that allows employers to attract, engage and retain talent is at the heart of Gallagher Benefit Services’ mission and our global Gallagher Better Works value proposition.

“Through the complementary strengths of Buck’s defined benefit offerings, investment consulting, digital employee engagement platform and international footprint, the acquisition will broaden, deepen and enhance our client offerings.

“I look forward to welcoming the 2,300 new colleagues joining us as part of this transaction to our growing Gallagher family of professionals.”

As of September 30, 2022, Buck reported pro forma adjusted trailing twelve-month revenues of around $280 million and EBITDAC of $34 million.

Gallagher anticipates to finance the acquisition through free cash flow and short-term borrowings.

The close of the transaction is expected in the first half of 2023, subject to customary regulatory approvals.