Brown & Brown Inc. Announces Calif. Asset Acquisition

October 24, 2002

Brown & Brown Inc. signed a definitive agreement to acquire the assets of four companies with combined revenue of about $27 million, in a deal expected to add to earnings and cash flow per share.

In a press release, the company said it agreed to buy the assets of Charter Financial Services Corp., the holding company for Cal-Surance Associates Inc.; United Network of Insurance Services Inc.; Sterling Reinsurance Intermediaries Inc. and Lancer Claims Services Inc., all based in Orange, Calif.

The transaction is expected to be completed Dec. 2, subject to antitrust clearance as well as certain other customary conditions.

Financial terms weren’t disclosed, but Brown & Brown said the purchase price is “generally consistent with industry standards for purchases of insurance intermediary organizations.”

The four companies specialize in program insurance business, as well as commercial retail insurance. Brown & Brown expects the acquisition to provide new revenue opportunities and additional distribution partners for its national programs.

Brown & Brown recently acquired C. Douglas Wilson Co., Life & Health Consultants Inc. and Burnett-Bates Agency Inc.

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