Wachovia Corp. in Charlotte, N.C., said Tuesday that it has a definitive agreement to buy Palmer & Cay Inc., a Savannah, Ga., agency that is the 15th-largest insurance brokerage and benefits consulting firm in the United States.
The deal - which would expand Wachovia's insurance revenue by about 60% - is expected to close this quarter; its price was not disclosed.
Palmer & Cay has 950 employees and operates 34 offices from the District of Columbia through 22 states, primarily on the East Coast and in the Midwest and Southwest.
Wachovia Insurance Services would have more than $400 million of annual revenue and 1,800 employees once the deal closes, making it one of the top 10 U.S. insurance brokerages. Wachovia's insurance division had about $250 million of annual revenue going into the deal.
John E. Cay 3d, the chairman and chief executive officer of Palmer & Cay, is to become the chairman of Wachovia Insurance. Stewart McDowell is to remain its president and chief executive officer.
