Arthur J. Gallagher & Co. had been trying to buy Harden and Associates Inc. for about 25 years before the deal was completed Dec. 29 for an undisclosed price.
CEO M.C. “Ceree” Harden III said Jan. 11 that the company began a succession plan in 2012.
He said that in the past several years as the mergers and acquisitions market “heated up,” it became clear to Harden’s leaders that the best financial option for their independently owned company was to align with a larger organization.
“We decided we would explore a strategic alignment with larger organizations,” Harden said.
“Our criteria for assessing opportunities was No. 1, will it be accretive to the client, will we have more resources to deliver the greater or larger value proposition? No. 2, will it be good for our colleagues and associates? And No. 3, will it be good for the community?”
After receiving calls from dozens of possible acquirers, Harden narrowed the options to five companies.
Harden and his team set five criteria they wanted an acquirer to meet. They found Gallagher to be the best fit.
“Their mission and culture are more aligned with us, they have been an insurance broker for 100 years,” he said.
“The scope of resources that they were able to bring to bear to our clients that increase the value proposition was as great or greater than any of the alternatives we looked at,” he said.
“We also believed the opportunities available to our associates would be greater in terms of opportunity for promotion and achieving their potential.”
Harden offers insurance, risk management, employee benefits and other services to businesses and individuals in Florida. It has a focus on the health care, real estate and construction industries. Harden’s father, M.C. Harden Jr., started the company in 1953.
Harden wrote $600 million in premiums last year. It did about the same in 2019, Harden said.
Gallagher is a global insurance brokerage, risk management and consulting services firm headquartered in Rolling Meadows, outside of Chicago.
It has offices in 49 countries and offers its services in 150 countries through a network of brokers and consultants.
Harden will be part of Gallagher’s Southeast division. Eventually, Harden will be rebranded as Arthur J. Gallagher & Co., replacing the signage in front of its office at 501 Riverside Ave.
Harden, 67, will become area chairman for Gallagher. He joined the company in 1976 following graduation from the University of Florida.
Justin Terry, Harden’s president and chief business development officer, will become a Gallagher senior vice president.
Jeremy Miller also will become a Gallagher senior vice president. He served as executive vice president and commercial insurance division account director with Harden.
Harden’s team, for the most part, will continue to operate business as usual. There are 140 employees throughout its offices in Jacksonville, Amelia Island and Tampa.
“What we’ve seen so far, just keep doing what you’re doing,” Terry said. “Let us give you additional tools with which to execute the work. From what we’ve seen so far, as a consultant, there’s a lot more capacity to help clients.”
The merger will help Harden service sectors where it previously didn’t have the expertise. Gallagher specializes in 21 industries while Harden focused on three.
“We can bring a different level of expertise and a much stronger value proposition to businesses in Jacksonville and be a better partner to them, help them make better decisions,” Miller said.