Photo by iStock/vectortatu

McFarlan Rowlands Insurance, a division of McDougall Insurance Brokers Ltd., announces it has acquired DJE & Associates Inc. (which operates as Sutherland Elliott Insurance Brokers, Gaiser Elliott Insurance Brokers and Thames Financial – and is known collectively as DJE & Associates).

DJE & Associates has offices across western Ontario and provides general P&C brokerage and other financial services to its client base.

An Aug. 18 press release notes the strategic acquisition continues the momentum generated by the combination of McFarlan Rowlands with McDougall in 2023.

“We’ve always held DJE & Associates in high regard,” says McFarlan Rowlands president Jason Schneider. “They’ve always done things the right way – and we know that joining the forces of McFarlan Rowlands and DJE & Associates will be of tremendous benefit to our collective customers, carriers and staff.”

Related: Merger takes McDougall into Atlantic Canada

Since October 2022, insurer Definity has held a 75% ownership interest in McDougall and later increased its ownership share to 78%. The carrier says its unique model for brokerage consolidation through McDougall allows acquired brokerages to contribute greater organic growth post-deal.

The relationships are structured as a form of roll-over equity transaction. Rather than taking the full cash price of a sale, the owners, executives or other shareholders of an acquiree get a portion of the sale proceeds as an equity stake in McDougall post-transaction.

“The model we have under the McDougall group is a little unique…we keep the entrepreneurs engaged today, keep equity in the business,” says Rowan Saunders, president and CEO of Definity, during an Aug. 1 earnings call. “As they do roll-ups, there is a lot of value [McDougall] can bring to the acquired companies such as more market access, more specialization and capabilities.”

Related: McDougall-McFarlan merger just the beginning for Definity

As part of the transaction, DJE & Associates president David Elliott will retire from the organization following a transition period.

“I owe so much to my clients, my staff and the communities that have supported DJE & Associates throughout my career,” Elliott says in a statement. “And I know that partnering with McFarlan/McDougall ensures that everyone will be treated consistently with DJE & Associates’ longstanding principles and practices. I am excited for what I know the future will bring.”

McFarlan and McDougall say they are committed to supporting DJE & Associates to ensure it maintains high standards of professionalism and customer service.

“Supplementing the excellent team behind DJE & Associates with the scale and resources of McFarlan Rowlands/McDougall will lead to win-wins across our organization,” says Lorne McDougall, vice president of McDougall Insurance.

“We’ve had excellent results growing…in western Ontario and know that DJE & Associates will continue this trend – our focus on community-oriented, broker-first brokerages fits seamlessly with DJE & Associates’ existing culture.”

Related: Latest P&C deals for McDougall, Acera

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Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.