Arthur J. Gallagher & Co. (NYSE: AJG) announced that it has acquired Hunt Financial Group, a boutique benefits consulting firm that includes Hunt Benefits & Associates, Inc. and Tenaglia & Associates, Inc. The acquisition brings the two companies’ Charlotte, North Carolina and Mount Pleasant, South Carolina offices into Gallagher’s portfolio, adding a niche consultative benefits capability for banking clients.
The deal is a continuation of Gallagher’s high‑growth, “tuck‑in” strategy that has driven revenue and margin expansion for years. By adding Hunt’s deep expertise in designing benefits packages for financial institutions, Gallagher can broaden its service offering to a high‑margin, high‑growth segment and cross‑sell its global brokerage and risk‑management solutions to a new client base. The acquisition also strengthens Gallagher’s presence in the banking sector, a market that has historically been a strong driver of its brokerage revenue.
Gallagher’s Q4 2025 results—reported on January 29 2026—showed revenue of $3.63 billion, up 30 % YoY, and adjusted EPS of $2.38, beating the consensus of $2.35. The company’s adjusted EBITDAC margin rose to 35 % from 32.2 % in the prior year, driven by higher mix in its brokerage segment and disciplined cost management. The Hunt acquisition is expected to reinforce this momentum by adding a high‑margin, high‑growth client base and by creating synergies that could further lift margins in the coming years.
Management highlighted the cultural fit and strategic alignment in a statement: “Hunt Financial Group is an excellent strategic and cultural fit, expanding our niche expertise within our benefits consulting operations. I am delighted to welcome Tim Hunt, Tom Tenaglia, and their associates to Gallagher.” The integration plan will keep the existing leadership in place while embedding the firms into Gallagher’s broader benefits platform, positioning the company to capture cross‑sell opportunities across its global network.
While the acquisition is a positive development, Gallagher’s financial health carries some risk. A recent Altman Z‑Score of 1.1 places the company in the distress zone, indicating potential liquidity concerns in the next two years. Nonetheless, the firm’s robust Q4 performance and ongoing M&A pipeline—33 deals in 2025 adding $3.5 billion in estimated annualized revenue—suggest that the acquisition will be a net positive for long‑term growth.
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