Brown & Brown, Inc. announces the acquisition of Dealer Specialties Group Corp. by Brown & Brown Dealer Services

Rhea-AI Summary

Brown & Brown, Inc. (NYSE: BRO) announced the acquisition of Dealer Specialties Group Corp., enhancing its Dealer Services operations. Dealer Specialties, known for providing F&I products and support to automotive dealers in New York, will integrate into Brown & Brown Dealer Services (BBDS). This strategic move aims to expand BBDS’s footprint and improve service offerings, leveraging Dealer Specialties' strong industry relationships. Leadership from both organizations expressed optimism about the growth potential and benefits to customers from this acquisition.

Positive

• Acquisition enhances BBDS operations and market presence in New York.
• Utilization of Dealer Specialties' industry relationships could lead to revenue growth.
• Anticipated immediate benefits for customers from Brown & Brown's diverse product offerings.

Negative

• Integration challenges may arise post-acquisition.

DAYTONA BEACH, Fla., June 01, 2022 (GLOBE NEWSWIRE) -- J. Scott Penny, chief acquisitions officer of Brown & Brown, Inc. (NYSE:BRO), and Andrew (Andy) Courchaine, owner of Dealer Specialties Group Corp. (“Dealer Specialties”), today announced that Brown & Brown Dealer Services (“BBDS”) has acquired substantially all of the assets of Dealer Specialties.

Dealer Specialties is an independent sales and service organization providing F&I products and sales support to automotive and powersport dealers primarily in New York state.  Following the transaction, Andy Courchaine and the Dealer Specialties operations will become part of BBDS, which operates under the leadership of Mike Neal.

Mike stated, “We are excited to continue growing our BBDS operations with another high-quality, strategic acquisition. Andy’s impressive industry knowledge and strong work ethic have enabled him to create and maintain long-standing relationships with quality dealer customers. Together, we look forward to continuing to grow our presence in New York and beyond.”

Andy stated, “We are extremely pleased to be joining BBDS and believe our customers will benefit immediately from Brown & Brown’s national footprint and strength, as well as the diversity of products and services Brown & Brown offers.   BBDS is an industry leader in the F&I space, and we are excited about continuing to meet and exceed the needs of our customers.” 

About Brown & Brown, Inc.

Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm, delivering risk management solutions to individuals and businesses since 1939. With more than 12,000 teammates in 350+ locations across the U.S. and select global markets, we are committed to providing innovative strategies to help protect what our customers value most. For more information, please visit bbinsurance.com.

This press release may contain certain statements relating to future results which are forward-looking statements, including those associated with this acquisition. These statements are not historical facts but instead represent only Brown & Brown’s current belief regarding future events, many of which, by their nature, are inherently uncertain and outside of Brown & Brown’s control. It is possible that Brown & Brown’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Further information concerning Brown & Brown and its business, including factors that potentially could materially affect Brown & Brown’s financial results and condition, as well as its other achievements, is contained in Brown & Brown’s filings with the Securities and Exchange Commission. Such factors include those factors relevant to Brown & Brown’s consummation and integration of the announced acquisition, including any matters analyzed in the due diligence process, and material adverse changes in the business and financial condition of the seller, the buyer, or both, and their respective customers. All forward-looking statements made herein are made only as of the date of this release, and Brown & Brown does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which Brown & Brown hereafter becomes aware.

For more information:

R. Andrew Watts
Chief Financial Officer
(386) 239-5770

FAQ

What does the acquisition of Dealer Specialties mean for BRO?

The acquisition enhances the operations of Brown & Brown Dealer Services and expands market presence, particularly in New York.

When was the acquisition of Dealer Specialties announced?

The acquisition was announced on June 1, 2022.

What is the strategic importance of this acquisition for Brown & Brown?

This acquisition is aimed at leveraging Dealer Specialties' strong relationships and expertise to improve service offerings and increase market share.

Who will lead the integrated operations after the acquisition?

Andy Courchaine will lead the integrated operations as part of BBDS, overseen by Mike Neal.

What are the anticipated benefits of the acquisition for customers?

Customers are expected to benefit from Brown & Brown's national footprint and a broader range of products and services.