Business
The Baldwin Group and CAC Group to Merge, Creating the Largest Majority Colleague-Owned, Publicly-Traded Insurance Broker
Total upfront consideration of $1.026 billion, consisting of $438 million in cash and 23.2 million shares of Baldwin common stock valued at $589 million
About this update from The Baldwin Insurance Group, Inc.
[{"type":"text","content":"\n\nTotal upfront consideration of $1.026 billion, consisting of $438 million in cash and 23.2 million shares of Baldwin common stock valued at $589 million based on the 30-day volume-weighted average pricing as of 12/1/2025; implied multiple of 7.9x 2025E Pro Forma Adjusted EBITDA inclusive of targeted full run-rate synergies.\n\n\nPost-closing payments include a performance-based earnout of up to $250 million and a $70 million deferred payment.\n\n\nThe transaction would be accretive to 2025 Adjusted EPS by over 20% based on targeted full run-rate synergies and the exclusion of one-time integration costs and transaction expenses.\n\n\nThe transaction is expected to be approximately net leverage neutral at close and to accelerate Baldwin’s path to deleveraging through 2028.\n\n\nThe combined entity is expected to generate 2026 Gross Revenue and Adjusted EBITDA in excess of $2 billion and $470 million, respectively.\n\n\nOn a pro forma basis, Baldwin would rank as the largest majority colleague-owned, publicly-traded insurance broker in the United States, based on Business Insurance’s 2025 Top 100 U.S. Brokers list.\n\n\n TAMPA, Fla.--(BUSINESS WIRE)--\nThe Baldwin Group (\"Baldwin\" or the “Company”) (NASDAQ: BWIN), a leading independent insurance brokerage and advisory firm, today announced it has entered into a definitive agreement to merge with CAC Group (\"CAC\"), a nationally recognized specialty and middle-market insurance brokerage firm (#35 in Business Insurance’s 2025 rankings). This transformational combination is expected to create one of the largest independent insurance advisory and distribution platforms in the United States, with exceptional depth in industry specialization and product expertise. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals.\n\nThe combination is expected to significantly expand the specialty capabilities of The Baldwin Group’s Insurance Advisory Solutions (IAS) segment by integrating CAC’s deep expertise in industries such as natural resources, private equity, real estate, senior living, education, and construction. Additionally, the combined company is expected to benefit from CAC’s strength in specialty product lines, including Financial Lines, Transactional Liability, Cyber, and Surety. These specialty capa...