Cadence Bank to sell its insurance operations
Cadence Bank has entered into a definitive agreement to sell its insurance operations, Cadence Insurance, to Arthur J. Gallagher & Co. for $904 million in cash.
Cadence Insurance pro forma revenues and EBITDAC (including minimal expected expense synergies) for the trailing 12 months ended September 30, 2023 were approximately $170 million and $62 million, respectively.
Cadence Insurance is an insurance brokerage business that specializes in commercial and personal property & casualty, employee benefits, business solutions, and risk management services. Cadence Insurance manages 30 offices in eight states across the Southeast.
Cadence anticipates the transaction, which is subject to standard closing conditions, will close in the fourth quarter of 2023. Cadence Insurance executive leadership, management and employees will join Gallagher following the sale.
“We have always liked the insurance business. Over the past 24 years, under exceptional leadership, the team has grown Cadence Insurance into the second largest bank-affiliated insurance brokerage in the country. The sale will allow us to focus on what we do best – building strong, long-lasting banking relationships, while also continuing to realize our long-term strategy. I have enjoyed working with the Cadence Insurance team immensely and have profound respect for what they do, and how well they do it. On behalf of all of us at Cadence, we will miss them. Gallagher is well regarded for its culture, ethics, service and responsibility to its people, and I am fully confident our customers and teammates can expect the same level of quality service and commitment to being a great place to work they experience today.” – Dan Rollins, chairman & CEO of Cadence Bank.
“Cadence Bank has been a fantastic partner of ours for the past 24 years, supporting our growth and evolution. During this collaborative process with Cadence Bank, we both determined that Gallagher is the best partner for us. Our team is what makes us who we are, and Gallagher recognized from the first conversation the talent of our team and its commitment to our clients and communities. We are energized about our future with Gallagher and what our team will be enabled to deliver to our clients.” – Markham McKnight, CEO of Cadence Insurance.
“Cadence Insurance is a fast-growing agency with strong niche capabilities across Construction, Real Estate, Manufacturing, Healthcare and Professional Services. With a similar culture, a high-performing team and a significant Southeastern presence there are immense long-term growth opportunities as part of Gallagher. I look forward to welcoming Markham, Chris and the nearly 800 Cadence Insurance colleagues to our growing Gallagher family of professionals.” – J. Patrick Gallagher, Jr., chairman, president and CEO.