Arthur J Gallagher Offers No Details on Summit Acquisition

Arthur J Gallagher (AJG) which bills itself as an international insurance brokerage and risk management services firm, headquartered in Itasca, Illinois, operations in 14 countries and doing business in more than 100 countries around the world through a network of correspondent brokers and consultants; announced that they just bought Summit Insurance Group in San Antonio, Texas.

No terms and conditions were announced. Was it a stock deal or a cash deal? What will the acquisition do to EPS. Accretive is the word most analysts look for. I assume there are the normal closing adjustments (whatever that means).

But let’s look at the record. On Sep 17 they announce the acquisition of Oxygen no terms disclosed. On Sept 15 they announce the acquisition of California Insurance Center no terms disclosed. On Aug 19 they acquired Wm W Grace no terms disclosed. Hey buddy that’s a lot of acquisition without terms and conditions being disclosed.

It’s time to open the kimono and let’s see how the family jewels look.

Oh by the way. Gallagher announced a dividend on July 24 payable a full two and a half months later. So the record date is Sept 30 and dividend is Oct 15. Why do you need the dividend hanging out there for such a long period of time? Especially, when you are wheeling, dealing and making announcements of mergers and acquisitions.