Risk management specialist Aon has strengthened its offering in the UK with a multi-million pound acquisition.

The group, which also provides reinsurance and human capital services, has bought the UK facultative brokering business of Gallagher.

The vendor is part of Arthur J Gallagher, an international insurance brokering and risk management services group.

Gallagher is a loss-making business and is being sold by its parent company for a reported $30 million (£15.1 million). The terms of the deal include its reinsurance broking business in the US.

Further payments could be made depending on the performance of the acquired operations meaning that Aon could be spending as much as $45 million (£22.6 million) for the assets.

Aon was advised by law firm Clifford Chance, while Arthur J. Gallagher was supported on the disposal by LG, led by partner Geoff Gouriet. The firm’s team included employment partner Simon Malcolm and corporate associates Farhod Moghadam, Sam Gray and Jane Harding.