The Baldwin Group to Acquire CAC Group in $1.03 Billion Deal

The Baldwin Group has announced a definitive agreement to acquire CAC Group, a specialty and middle-market insurance brokerage firm, in a transaction valued at approximately $1.03 billion. This strategic merger is expected to create one of the largest independent insurance advisory and distribution platforms in the United States.

Under the terms of the agreement, Baldwin will pay $438 million in cash and issue 23.2 million shares of its common stock, valued at $589 million based on the 30-day volume-weighted average price as of December 1, 2025. The deal also includes a performance-based earnout of up to $250 million and a $70 million deferred payment. The transaction is anticipated to close in the first quarter of 2026, pending customary closing conditions and regulatory approvals.

Trevor Baldwin, CEO of The Baldwin Group, highlighted the complementary nature of the merger, stating, "This combination brings together two highly complementary firms, aligned in culture and values, yet distinct in expertise, business mix, and geographic footprint." He added that uniting CAC's specialty capabilities with Baldwin's scale and diversified platform will create a stronger organization capable of delivering exceptional solutions for clients and opportunities for colleagues.

CAC Group, ranked 35th in Business Insurance’s 2025 Top 100 U.S. Brokers list, reported $282.4 million in U.S. brokerage revenue in 2024 and employs approximately 650 staff. The merger is projected to generate over $2 billion in gross revenue and more than $470 million in adjusted EBITDA by 2026.

The combined entity will enhance Baldwin's specialty capabilities by integrating CAC's expertise in industries such as natural resources, private equity, real estate, senior living, education, and construction. Additionally, CAC's strengths in specialty product lines, including financial lines, transactional liability, cyber, and surety, will complement Baldwin's existing offerings.

Upon completion of the transaction, CAC's Executive Chairman, Paul Sparks, will join Baldwin's board of directors, signifying integration at both operational and leadership levels.

This acquisition reflects a broader trend of consolidation within the U.S. insurance brokerage industry. Notable recent mergers include Arthur J. Gallagher's $13.45 billion acquisition of AssuredPartners and Brown & Brown's $9.83 billion acquisition of Accession Risk Management.

The consolidation of Baldwin and CAC is anticipated to enhance service offerings and product diversity for clients, particularly in specialized industries. It is also expected to create a more robust platform for attracting and retaining top talent within the insurance brokerage sector and potentially lead to operational efficiencies and cost synergies, benefiting stakeholders and shareholders.

The Baldwin Group, publicly traded on NASDAQ under the ticker symbol BWIN, is a leading independent insurance brokerage and advisory firm with a national middle-market distribution footprint. CAC Group is a nationally recognized specialty and middle-market insurance brokerage firm.

The transaction's total upfront consideration of $1.026 billion includes $438 million in cash and 23.2 million shares of Baldwin common stock valued at $589 million. The deal also features a performance-based earnout of up to $250 million and a $70 million deferred payment. The merger is expected to be accretive to Baldwin’s 2025 Adjusted EPS by over 20%, based on targeted full run-rate synergies and excluding one-time integration costs and transaction expenses.

This strategic move positions the combined entity to better serve clients across various industries and product lines, reinforcing its competitive edge in the evolving insurance brokerage landscape.