Marsh & McLennan Cos. and Jardine Lloyd Thompson have agreed to sell JLT’s aerospace business to Arthur J. Gallagher.

The arrangement provides for the acquisition of all assets within JLT’s global aerospace retail and wholesale insurance broking division, which includes operations in the U.K., U.S., Canada, Australia, New Zealand and 10 other countries spanning Europe, Latin America and Asia.

The agreement also includes the assets of Hayward Aviation, a U.K. insurance broker that specializes in aviation for high-net-worth individuals and smaller airlines, said Gallagher.

Financial details of the acquisition, which includes transfer of personnel, were not disclosed. The sale is subject to the approval of the European Commission (EC).

On March 1, MMC and JLT formally committed to divest JLT’s aerospace practice to address a potential overlap identified by the EC’s Phase 1 review of MMC’s acquisition of JLT, said MMC in a statement. Marsh & McLennan confirmed that there are no discussions with the EC concerning any other aspect of the combined MMC-JLT business.

Subject to remaining regulatory and U.K. High Court approvals, the closing of the acquisition remains on track for the spring of 2019.

Approximately 250 employees from JLT’s global aerospace division will join Gallagher as part of the agreement, said Gallagher in a statement. This includes around 100 employees within JLT’s London market operations who will become part of Gallagher’s existing aviation division, which most recently added independent aviation insurance and reinsurance broker Boston Marks to its growing London-based aviation operations.

“The addition of JLT’s global aerospace broking operations will firmly position Gallagher as a leading broker in the extremely attractive and dynamic aviation and aerospace sector,” said J. Patrick Gallagher Jr., chairman, president and CEO of the Rolling Meadows, Ill.-based broker.

“The business portfolio is a highly complementary geographic fit with Gallagher’s existing footprint and will provide significant growth opportunities for our international businesses. We look forward to welcoming the team to Gallagher later this spring,” he added.

Source: Arthur J. Gallagher & Co.

*A version of this story appeared previously in our sister publication Insurance Journal.