Baldwin Completes CAC Merger, Forging a $2 Billion Insurance Titan

TAMPA, FL – January 02, 2026 – The landscape of the American insurance industry has been significantly reshaped with the official completion of a landmark merger. The Baldwin Group (NASDAQ: BWIN), a major independent insurance brokerage, today confirmed it has finalized its previously announced transaction with CAC Group, a nationally recognized specialty and middle-market brokerage firm.

The deal creates one of the largest independent insurance advisory and distribution platforms in the United States. The combined entity is projected to generate gross revenues exceeding $2 billion and an adjusted EBITDA of over $470 million for 2026, signaling the formation of a new heavyweight contender in a rapidly consolidating market. This strategic combination marries Baldwin's extensive distribution network, which serves over three million clients, with CAC's deep-seated expertise in niche and complex risk markets.

A Strategic Play for Scale and Specialization

At its core, the merger is a calculated move to leverage complementary strengths. The Baldwin Group has built a formidable presence across the U.S. and internationally by providing tailored insurance solutions to a wide array of personal and commercial clients. CAC Group, formerly an employee-owned firm ranked in the top 40 of U.S. brokerages, brings a powerful suite of specialized services through its distinct divisions: CAC Specialty, CAC Agency, and CAC Capital.

The integration is set to significantly bolster The Baldwin Group's Insurance Advisory Solutions (IAS) segment. CAC's proficiency in complex areas such as financial lines, transactional liability, cyber risk, and surety products will now be accessible through Baldwin's broader platform. Furthermore, CAC's established leadership in sectors like natural resources, private equity, real estate, and education provides the merged firm with immediate credibility and market penetration in high-value verticals.

This fusion is designed to create a comprehensive, one-stop-shop for clients. The new entity can now offer a seamless spectrum of services, from standard property and casualty or employee benefits packages via CAC Agency to sophisticated structured solutions that merge insurance and capital markets through CAC Capital. The stated goal is to deliver bespoke solutions that address the full lifecycle of a client's risk management needs, a capability that few independent firms can claim at this scale.

The Financial Architecture of a Mega-Merger

The financial terms of the deal underscore its magnitude. The transaction involved an upfront consideration valued at $1.026 billion, composed of $438 million in cash and 23.2 million shares of Baldwin's common stock. The agreement also includes potential future payments, with a performance-based earnout of up to $250 million and a deferred payment of $70 million contingent on post-closing performance.

For investors, The Baldwin Group has positioned the merger as a significant value creator, projecting that the combination will be more than 20% accretive to its 2025 adjusted earnings per share (EPS), assuming full run-rate synergies are achieved. The company also noted that the transaction is expected to be approximately net leverage neutral at closing, with a clear strategy to accelerate deleveraging through 2028, addressing potential concerns about the debt taken on to finance the deal.

Market reaction has been cautiously analytical. In the months preceding the merger's announcement, Baldwin's stock (BWIN) had faced headwinds, declining 41% over a six-month period amid challenging market conditions. Post-announcement, analyst sentiment has been mixed, reflecting both the opportunities and the inherent risks of such a large-scale integration. While some firms like Jefferies raised their price target on the stock, citing EPS growth, others like BMO Capital lowered their target, pointing to the significant execution risk associated with achieving ambitious synergy targets. This divergence highlights the central question for investors: can Baldwin successfully integrate CAC and unlock the promised value?

Reshaping the Competitive Landscape

The creation of this new entity sends a clear signal to the rest of the insurance brokerage sector. In an industry marked by consistent consolidation, scale is increasingly crucial for competing effectively. The combined firm's $2 billion revenue projection places it firmly in the upper echelon of independent brokers, creating a more formidable competitor to both other large independent firms and publicly traded global giants.

For clients, the merger promises tangible benefits. Businesses and individuals with complex or specialized insurance needs, who previously might have worked with boutique specialty brokers like CAC, can now access that same level of expertise backed by the resources, technology, and expansive market access of The Baldwin Group. The integration of CAC's data and analytics infrastructure is expected to enhance risk management strategies and lead to more innovative and tailored insurance products for clients across all segments.

The merger expands Baldwin's footprint in key middle-market commercial lines while simultaneously deepening its specialty capabilities. This dual-pronged enhancement allows the firm to compete more aggressively for a wider range of business, from Main Street enterprises to large, multinational corporations with intricate risk profiles.

The Integration Challenge: Merging Talent and Technology

With the legal and financial aspects of the merger complete, the most critical phase now begins: the operational and cultural integration of two distinct organizations. The new entity will comprise approximately 5,000 employees spread across major U.S. markets, bringing together different systems, processes, and corporate cultures. Successfully harmonizing these elements is paramount to realizing the deal's strategic and financial goals.

A key focus will be on aligning CAC's specialist knowledge with Baldwin's extensive middle-market distribution network. This involves not only cross-training and creating collaborative teams but also integrating proprietary technology platforms to ensure a seamless flow of information and client service. Leadership will face the task of retaining top talent from both firms, particularly from CAC's historically employee-owned structure, by demonstrating a clear and compelling vision for the combined company's future.

Ultimately, the long-term success of this merger will be defined not by the press releases or financial projections, but by the company's ability to forge a unified, high-performing organization from two successful but separate parts. The blueprint for a seamless post-merger future is now in the hands of The Baldwin Group's leadership, who must navigate the complexities of integration to build the insurance powerhouse they have envisioned.