The Baldwin Group, an independent insurance brokerage and advisory firm, and the CAC Group, a national middle-market insurance brokerage and advisory firm, consisting of CAC Specialty and CAC Agency, have completed their previously announced merger for a total advance of $1.026 billion.
All told, the merger is expected to create one of the largest independent insurance advisory and distribution platforms in the United States, with the entity expected to generate total revenue and adjusted EBITDA of more than $2 billion and $470 million, respectively, by 2026.
The merger combines CAC’s expertise with Baldwin’s middle market distribution platform and is expected to leverage its reinsurance and MGA businesses and proprietary technology platform.
Additionally, the move is designed to enhance and expand the professional capabilities of Baldwin Group’s Insurance Advisory Solutions (IAS) division by integrating CAC’s expertise in natural resources, private equity, real estate, senior living, education and construction.
At the same time, the new entity will benefit from CAC’s strengths in specialty product lines, including financial product lines, trading liability, network and guarantees, all of which benefit from its data and analytics platform.
The transaction is expected to close with approximately neutral net leverage and will accelerate Baldwin’s path to deleveraging through 2028.
As previously reported, total consideration of $1.026 billion includes $438 million in cash and 23.2 million shares of Baldwin common stock, valued at $589 million based on 30-day volume weighted average pricing through December 1, 2025; an implied multiple of 7.9x projected 2025 adjusted EBITDA, including targeted full run-rate synergies.
It was also previously learned that post-closing payments include up to $250 million in performance-based earnings and $70 million in deferred payments as the deal is expected to be accretive in 2025.
