Definity’s McDougall indicators $232 million brokerage deal

McDougall Insurance coverage Brokers (McDougall), a subsidiary of Definity Monetary Company (Definity), has acquired MacFarlan Rowlands Insurance coverage Brokers (McFarlan Rowlands) and its associates for an combination money and inventory consideration of $232 million.

Definity mentioned in a press launch alluding to its nationwide enlargement that these companies collectively will generate greater than $700 million in annual premiums, make use of 670 folks and have 57 workplaces.

McFarlan Rowlands is an Ontario-based insurance coverage dealer with 200 workers and 18 workplaces in southwestern Ontario. The group handles greater than $200 million in annual premiums and has experience in claims reconciliation, life and group insurance coverage along with its property and casualty insurance coverage operations.

McFarlan Rowlands CEO Burke Neale mentioned: “We’re excited in regards to the alternative to construct a number one brokerage platform with Definity and McDougall.”

Because of the transaction, anticipated whole working earnings from Definity’s funding within the dealer is predicted to extend from $40 million to roughly $60 million earlier than deducting monetary prices, taxes and minority pursuits. Definity says.

Rowan Sanders, President and CEO of Definity, mentioned: “We now have the precise scale to develop our platform geographically and this deal places Definity on a powerful trajectory in the direction of constructing one other of his billion greenback companies. ”

Definity mentioned the money portion of the acquisition worth was funded by extra capital and debt, with the rest being met by McDougall’s issuance of shares to McFarlan Rowlands shareholders.

McFarlan Rowlands is a excessive efficiency brokerage agency led by an skilled administration crew with a protracted observe file of making worth with well-known manufacturers. “Definity and McDougall’s dealer platform mannequin continues to generate sturdy curiosity from the dealer neighborhood attributable to its deal with shared possession.”

The associated quantities stay topic to closing and post-closing changes because the transaction closed on Could 8, 2023, Definity mentioned.