The owners of Barney & Barney LLC decided to expand two years ago, opening an Orange County office to complement the San Diego headquarters within months.
But when it came time to move into the Northern California market, the decision-makers of the industrial-strength insurance brokerage decided a merger , with Oakland-based Saylor & Hill Co. , would be their best solution, according to a Jan. 24 announcement.
Terms of the deal, expected to close March 31, were not disclosed.
Because both brokerages have established names in the insurance industry , Barney & Barney will celebrate its centennial next year while Saylor & Hill was founded in 1933 , they will maintain individual company names, although they will use an appended name, B & B; Co.
Annual premiums under the new company are estimated at $1 billion; the combined 25,000 client accounts generate $62 million in annual revenue, according to the merger announcement.
“We want to drive that number higher in 2008,” said Paul Hering, who will be the managing principal and chief executive officer of B & B; Co., the same titles he has with Barney & Barney. “We’re hoping for $65 (million) to $75 million by the end of 2008.”
The company’s three offices will employ a combined staff of 270 with 25 owners.
“We’ve always been interested in the Bay Area,” Hering said. “They (Saylor & Hill) are a great fit to our organization.”
He says that B & B; Co. will retain the brokerage’s status as a private company. It will continue to provide premier insurance, risk management and employee benefits solutions, according to a news release.
“The three core offices will be our main focus,” Hering said. ” We hope to grow organically and attract the best talent by remaining a private company.”
Barney & Barney lists its “core capabilities” as technology/life sciences, schools/public entities, hospitality, international risk, health care, alternative risk and automotive dealers on its Web site.
B & B; Co. is expected to “debut in the top 50 of Business Insurance magazine’s list of 100 Largest U.S. Brokers,” according to a statement from Barney & Barney. Although additional expansion is still part of a longer-range plan, Hering says that, for now, the company will work to ensure the success of the merger.
The new company Web site is www.abandbcompany.com.