Brown & Brown Sells Four TPA Units to Davies Group – RVBusiness – Breaking RV Industry News
DAYTONA BEACH, Fla., – J. Scott Penny, chief acquisitions officer of Brown & Brown, Inc. (NYSE:BRO), today announced an agreement with Davies Group Ltd. that includes the sale of four third-party administrator (TPA) businesses and a long-term strategic commercial relationship. The transaction is expected to close in December of 2023, subject to certain closing conditions.
The four claims and services businesses to be acquired by Davies include American Claims Management (ACM), a TPA; Preferred Governmental Claims Services (PGCS), a claims management business specializing in Florida governmental and municipality agencies; USIS, a leading supplier of managed care services and TPA for workers’ compensation and liability claims; and ICA, a premier independent property adjusting firm (collectively, the TPA Operations).
All 600 teammates in the TPA Operations will be transitioning to the Davies team as part of this transaction and will continue to serve their customers and carrier partners as they do today as part of Brown & Brown. Further, Brown & Brown is establishing a long-term commercial relationship with Davies to leverage their claims services capabilities to enhance Brown & Brown’s core brokerage and programs operations.
Chris Walker, president of the National Programs segment, stated, “Brown & Brown has had a working relationship with the Davies organization for many years. As they began to look at expanding their presence in the United States, there was a natural opportunity to engage our team. Through our discussions, we determined that we had an opportunity to enhance both of our organizations through a strategic transaction. Davies is best positioned to invest the necessary resources to grow these TPA businesses, from technology enhancement to training and development opportunities for teammates.”
“We are thrilled to sign this deal with Brown & Brown and are excited about the 600 incredibly talented colleagues that will be joining the Davies Group,” said Dan Saulter, group CEO of Davies. “This transaction enables us to invest and grow ACM, PGCS, USIS and ICA while building a strategic relationship with Brown & Brown to support their business with claims and more comprehensive solutions as they continue to grow their business.”
The acquired businesses represent approximately $100 million of annual revenue and the transaction will generate purchase proceeds in the range from $185 million to $205 million.
Source: https://rvbusiness.com/brown-brown-sells-four-tpa-units-to-davies-group/
