JP Morgan Reports on Brown & Brown's Acquisition of Arrowhead

J.P. Morgan published a research report today on Brown & Brown (NYSE: BRO) following its announcement that it would be acquiring Arrowhead General Insurance Agency for $395 million.

In the report, J.P. Morgan wrote, “Brown & Brown announced today that it is acquiring Arrowhead General Insurance Agency, Inc. (‘Arrowhead'), a national insurance program manager and managing general agent (MGA) for $395 million. The transaction will be financed by $195 million of cash on hand and $200 of term notes. Management estimates that the transaction will add $0.06-$0.09 to 2012 GAAP EPS.”

J.P. Morgan maintains its Neutral rating and $23 price target on Brown & Brown, which is currently trading at $21.65, down 0.51% from yesterday's close.