The financial terms of the deal were not disclosed.

Founded in 1979, Tarantino specializes in insurance for the restaurant, hospitality, manufacturing, trucking and property-owner industries.

The Itasca, Ill.-based company said that Chairman Salvatore Tarantino, President Donald Tarantino and their team will continue to operate the firm, whose name will change to Gallagher-Tarantino in their current San Francisco location under the direction of James McFarlane, west coast regional manager of Gallagher's brokerage services retail unit.

The company's stock was up 16 cents, or 0.6%, at $25.22 Wednesday.