BPJ acquisition splits up benefits company

Barker-Phillips-Jackson Inc. agreed to buy out two founders of Employee Benefit Design LLC and bring on half of the insurance benefits company’s employees.

In the deal scheduled to close June 1, BPJ will purchase the books of business managed by EBD partners Dan Ruggeri and Dan Burns, as well as nine other employees, leaving EBD with 10 staff members, led by partners Ken Stephens and Chance Potts, Ruggeri said. Ruggeri, Burns and Stephens founded the firm in 1997, and Potts came on within a year afterward, he said.

Ruggeri declined to disclose the acquisition cost or the number of clients represented in the deal. Ruggeri, Burns and the team likely would move in to BPJ by July 1, he said.

EBD partners had differing visions for the future of the company, which Ruggeri said was the deciding factor in the split.

“Our vision is to, No. 1, put together best-of-class tools, whether it be for compliance or benefit platforms or benefit exchanges, provide our clients with property and casualty options, and lastly, but just as importantly, provide our employees ownership in our business,” he said. “The only way we can do that is to incubate our business into (BPJ’s) existing (employee stock ownership plan) business.”

The merger would put BPJ’s employee count above 50. As of Nov. 3, the company had 41 employees, according to Springfield Business Journal list research. The 11 EBD employees plan to take on producer roles in BPJ, Ruggeri said.

“Dan and I have several clients who are interested in working with us in property and casualty, as well,” Ruggeri said. “Frankly, if you’re on the benefits side, it’s virtually impossible to start a P&C company because you have to have the markets; in order to get the markets, you have to have the clients. If you don’t already have an existing P&C block, you can’t get those markets.”

Founded in Springfield in 1960, BPJ operates satellite offices in Rolla and West Plains. The firm provides commercial insurance, surety bonding, personal lines, employee benefits and individual benefits.