US insurance company the Baldwin Group has signed a definitive agreement to merge with CAC Group, a specialist and middle-market insurance brokerage, for a total upfront value of $1.03bn. 

This comprises $438m in cash and 23.2 million shares of Baldwin common stock, which are valued at $589m based on the 30-day volume-weighted average price as of 1 December 2025. 

The deal structure also includes up to $250m in performance-based earnout payments and a deferred payment of $70m following closure. 

The transaction is forecast to increase Baldwin’s 2025 adjusted earnings per share by more than 20%. 

Baldwin expects net leverage to remain largely unchanged at closing, with plans for accelerated deleveraging through 2028. 

Combined projections for the merged company estimate gross revenue exceeding $2bn and adjusted earnings before interest, taxes, depreciation and amortisation above $470m by 2026.  

The parties aim to complete the transaction in the first quarter of 2026, pending regulatory approval and standard closing conditions. 

The merger will broaden the specialty services of Baldwin’s Insurance Advisory Solutions segment through the addition of CAC’s experience in sectors such as construction, education, natural resources, private equity, real estate and senior living.  

CAC’s capabilities in financial lines, transactional liability, cyber and surety are expected to add further depth in specialty product lines, supported by its data and analytics platform. 

Baldwin Group CEO Trevor Baldwin said: “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.” 

The merged entity plans to combine CAC’s specialist expertise with Baldwin’s established middle-market distribution network.  

The integrated platform will use existing reinsurance and managing general agent (MGA) operations as well as proprietary technology platforms from Baldwin.  

With an operational footprint across all major US markets, the merged company will have nearly 5,000 employees serving clients across retail, specialty, reinsurance and MGA services. 

CAC Group CEO Erin Lynch stated: “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 fuelled our growth.” 

In March this year, the Baldwin Group announced a note purchase agreement to raise $110m through surplus debentures to finance the launch of its reciprocal insurance exchange.