At the end of February, BB&T Corporation (NYSE: BBT) announced that an agreement had been reached with Cooper Gay Swett & Crawford to acquire CGSC North America Holdings Corporation (“Swett & Crawford”) in a $500 million cash transaction expected to close before the half of the year.
This purchase is projected to add more than $200 million in annual revenue to BB&T Insurance and, according to an article posted on PR Newswire, BB&T expects to record approximately $500 million of goodwill and intangibles because of this acquisition.
While BB&T, one of the largest financial services holding companies, has taken a break from acquiring banks, their attention has simply been diverted to building BB&T Insurance Holdings, the fifth largest insurance broker in the U.S.
Swett & Crawford has served the commercial insurance marketplace for more than 100 years.
“We have admired the Swett & Crawford business model for many years,” said John Howard, chairman and CEO of BB&T Insurance, in a news release on Feb. 24. “This represents a compelling opportunity to further build BB&T Insurance with the addition of a world-class company with a strong and talented team of industry specialists.”
It is clear that BB&T is remaining ahead of the curve with their keen eye for investment opportunities. Certainly a force to be reckoned with. I wonder what will be next for them.