The Baldwin Group, an independent insurance brokerage and advisory firm, and CAC Group, a national middle-market insurance broker and advisor, comprising CAC Specialty and CAC Agency, have entered into a definitive agreement to merge, for a total upfront consideration of $1.026 billion.
The total consideration consists of $438 million in cash and 23.2 million shares of Baldwin common stock valued at $589 million based on the 30-day volume-weighted average pricing as of December 1st, 2025; implied multiple of 7.9x 2025E Pro Forma Adjusted EBITDA inclusive of targeted full run-rate synergies.
Post-closing payments include a performance-based earnout of up to $250 million and a $70 million deferred payment, as the transaction is expected to be accretive to 2025.
The merger is expected to create one of the largest independent insurance advisory and distribution platforms in the United States.
This entity is expected to generate 2026 gross revenue and adjusted EBITDA of over $2 billion and $470 million, respectively.
The new entity will enrich and expand the specialty capabilities of The Baldwin Group’s Insurance Advisory Solutions (IAS) segment by integrating CAC’s expertise in natural resources, private equity, real estate, senior living, education, and construction.
Meanwhile, the combined entity will also benefit from CAC’s strength in specialty product lines, including financial lines, transactional liability, cyber, and surety, all of which benefit from CAC’s data and analytics platform.
The transaction is expected to be approximately net leverage neutral at close and to accelerate Baldwin’s path to deleveraging through 2028.
The merger combines CAC’s specialty expertise with Baldwin’s middle market distribution platform and is expected to leverage its reinsurance and MGA operations and proprietary technology platforms.
Trevor Baldwin, Chief Executive Officer (CEO), The Baldwin Group, commented, “This is a transformational moment for The Baldwin Group. This combination brings together two highly complementary firms, aligned in culture and values, yet distinct in expertise, business mix, and geographic footprint.
“By uniting CAC’s deep specialty capabilities with Baldwin’s scale and diversified platform, we create a stronger, more balanced organisation that can deliver exceptional solutions for clients and unmatched opportunities for colleagues. CAC has built an enviable specialty firm, and we are looking forward to welcoming their exceptional team to The Baldwin Group.”
Erin Lynch, CEO, CAC Group, added, “Coming together with Baldwin gives us the scale and infrastructure to accelerate everything that makes CAC distinctive: our specialty expertise, entrepreneurial mindset, and relentless focus on client success. This merger positions us to deliver more for clients and create expanded opportunities for colleagues, while staying true to the values that have fueled our growth.”
The combined organisation will have a footprint in all major markets across the United States, and comprise nearly 5,000 employees across retail, specialty, reinsurance, and MGA platforms.
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