The Baldwin Group and CAC Group are joining forces in a deal that will create one of the largest insurance brokers in the U.S. owned mostly by its employees and publicly traded. This merger brings together Baldwin’s broad middle-market reach with CAC’s specialty expertise.
The total value of the deal is $1.026 billion upfront. Baldwin will pay $438 million in cash and nearly $589 million in its own shares, totaling 23.2 million common shares. On top of that, there is potential for an extra $250 million based on performance and a $70 million deferred payment. The companies aim to complete the merger in the first quarter of 2026, pending regulatory approvals.
Once combined, the new company expects to bring in more than $2 billion in gross revenue and over $470 million in adjusted EBITDA during 2026. The merger should increase Baldwin’s 2025 adjusted earnings per share by more than 20% when excluding one-time costs, without adding extra debt pressure at closing.
CAC will add new specialty areas to Baldwin’s Insurance Advisory Solutions, including services for natural resources, private equity, real estate, senior living, education, and construction sectors. It also boosts Baldwin’s products in financial lines, transactional liability, cyber risk, and surety, supported by CAC’s own data and analytics tools. The new entity will merge Baldwin’s reinsurance, managing general agent (MGA), and technology operations, giving their experts more ways to develop and distribute products.
Together, Baldwin and CAC will have about 5,000 employees across major U.S. markets, serving clients through retail, specialty, MGA, and reinsurance channels.
Trevor Baldwin, CEO of The Baldwin Group, described the merger as a big step forward. He said combining CAC’s specialty skills with Baldwin’s size creates a stronger and more balanced company that offers better solutions for clients and more opportunities for employees.
CAC’s CEO, Erin Lynch, said the deal will speed up CAC’s specialty-focused growth and provide the scale and resources necessary to offer more to clients while staying true to the company’s core values.
For context, the combined Baldwin-CAC operation will be a significant player among U.S. insurance brokers, but still smaller than global giants like Marsh McLennan, Aon, Arthur J. Gallagher, and WTW, which report revenues ranging from about $10 billion to $24 billion. Baldwin alone reported roughly $1.39 billion in U.S. brokerage revenue in 2024. CAC’s revenue grew to around $263 million in 2023 and is expected to hit close to $295 million in 2024.
Baldwin will hold a webcast and conference call on December 3 at 8:30 am ET to discuss the merger in detail. This move marks a major change in the insurance brokerage landscape, combining scale and specialty expertise to better compete and serve clients nationwide.