The deal follows Michael Rea’s promise that Gallagher would have another acquisition finalised before the end of 2018.
Gallagher has completed its fourth deal of 2018 by buying Pavey Group for an undisclosed sum.
According to a statement Graham Brown, Pavey Group managing director, will remain with the business and the broker. Additionally, its team of 83 staff will continue to operate from its locations in Torquay, Exeter, Holsworthy and Highbridge.
Pavey Group, which will become part of Gallagher’s retail division, specialises in commercial businesses, care facilities, charities, construction, manufacturing, agricultural and leisure sectors.
Earlier this year, chief executive of Gallagher’s UK retail division, Micheal Rea, stated that the business was looking to complete another deal before Christmas following its buy of a controlling interest stake in Purple Bridge Group, the holding company for Vasek Insurance Services.
Gallagher revealed it would return to buying earlier this year with a plan to focus on regional bolt-on deals. Since then its completed deals with Portmore Insurance Brokers and Risk Services.
Rea commented: “Pavey Group has an excellent reputation for looking after its clients’ needs in the mid-corporate space and in specialist sectors.
“We really like the management team, their values and the culture that they have created, and are looking forward to working together and taking the business forward.”
The Pavey business includes the Cottagesure scheme for owners of holiday homes and cottage complexes across the UK.
It also developed the Mole Valley farmers brand in 2014 due to its relationship with farming co-operative Mole Valley farmers.
Rea added: “Pavey Group is a great strategic fit for our UK business, as a long-established, commercially led, growing regional broker with a strong reputation for client service.
“Bringing Pavey Group into our UK branch network will not only significantly increase our client reach in the South West and add complementary expertise, it will also strengthen our client offering in other key niche sectors.”
Graham Brown commented: “This is an exciting development for our teams at Pavey Group and Gallagher, one that will help us create even more compelling solutions for businesses based in the South West and beyond.
“Our scale and reputation locally, combined with Gallagher’s national and global reach, will create a winning formula for businesses seeking independent insurance advice and tailored programmes whatever industry or service sector they operate in.”
For all the latest industry news direct to your inbox, sign up for our daily newsletter.
- Andy Fairchild exits Broker Network
- Ed appoints broking CEO
- Members surprised at Fairchild’s Broker Network exit
- InsurTech: Meet the tech insiders
- Stackhouse Poland buys Property Insurance Initiatives
- Broking success: Toby Clegg, chief executive officer, Clegg Gifford
- Call for evidence on discount rate setting welcomed