Definity Financial Corporation, through its subsidiary, McDougall Insurance Brokers Limited, has purchased 100 per cent of the shares of McFarlan Rowlands Insurance Brokers Inc. and its affiliated entities for cash and share considerations totalling $232-million. The deal, funded through a combination of excess capital, debt and the issuance of McDougal shares to McFarlan Rowlands shareholders, closed May 8.
Definity says its ownership in McDougal remains at approximately 75 per cent after accounting for all related transactions.
McFarlan Rowlands is an Ontario-based insurance brokerage with more than 200 employees in 18 offices. The company reports having more than $200-million in annual premiums. “Combining McFarlan Rowlands with McDougall establishes a leading broker platform with significant scale in Ontario and provides a solid foundation for national expansion,” the company said in a statement announcing the deal. They add that the deal increases earnings from distribution for Definity by approximately 50 per cent.
Rowan Saunders, Definity president and CEO says the deal meaningfully advances the company’s’ broker platform strategy. “We now have appropriate scale from which to extend the platform geographically and, with this transaction, we are making strong progress toward creating another billion-dollar business for Definity.”
