Wachovia Corp., the nation's fourth-largest bank holding company, said it closed its purchase of Palmer & Cay Inc., the big Savannah, Ga., insurance brokerage and benefits consulting firm, on Friday.
The acquisition leaves Wachovia Insurance Services with 46 offices in 22 states and the District of Columbia, and nearly 1,800 employees. With Palmer & Cay's $150 million of annual revenue, the Wachovia unit is expected to have more than $400 million of revenues this year, making it one of the top 10 U.S. insurance brokerages. (Wachovia's was the sixth-largest bank-owned insurance operation last year and remains sixth, pro forma, after the Palmer deal.)
The purchase was the latest development of a growth strategy that has nearly tripled the size of Wachovia Insurance Services in less than three years, the company said.
Stewart McDowell, the president and chief executive officer of Wachovia Insurance Services, said last month when the deal was announced that it marked an evolution to a "national presence" from the prior strategy of matching the banking parent's regional footprint.
Palmer & Cay has offices in California, and Mr. McDowell said Wachovia Insurance may continue its deal push with deals on the West Coast.
