Arthur J. Gallagher & Co., an insurance brokerage headquartered in Rolling Meadows, Illinois, has agreed to acquire Woodruff Sawyer, a San Francisco-based insurance brokerage, for $1.2 billion.

The deal, expected to close in the second quarter of 2025, follows Gallagher’s 2024 agreement to acquire AssuredPartners for $13.45 billion for its middle-market reach. Andy Barrengos, chairman and CEO of Woodruff Sawyer, will operate under the direction of Peter Doyle, head of Gallagher’s U.S. retail property/casualty brokerage operations.

Woodruff Sawyer provides a full suite of commercial property and casualty products, employee benefits solutions and risk management services with a focus on middle and large market clients. “Woodruff Sawyer has an outstanding reputation in our industry, and we have long admired their niche expertise and client-focused culture,” said J. Patrick Gallagher, Jr., Chairman and CEO. “I look forward to welcoming Andy and the more than 600 Woodruff Sawyer colleagues to our growing Gallagher family of professionals.”