Gallagher Buys Massachusetts-based Eastern Insurance

Arthur J. Gallagher & Co., the global insurance brokerage, has agreed to acquire Massachusetts-based Eastern Insurance Group, a subsidiary of Eastern Bank, Gallagher announced.

The move is subject to regulatory approval. The purchase transaction should close in the fourth quarter of this year.

Eastern Insurance, based in Natick, offers commercial property-casualty insurance and personal lines products and employee benefits consulting.

Under the agreement, Gallagher said it will acquire the Eastern Insurance assets for consideration of $510 million net of agreed seller-funded expenses. Eastern’s pro-forma revenues for the 12 months that ended in June were $104 million.

Eastern President and CEO Tim Lodge and his team will remain at their current offices, and will report to Patrick Kennedy, head of Gallagher’s Northeast retail property-casualty brokerage operations, Gallagher said in a news release.