3 March 2014 News

KKR buys Sedgwick Claims Management

KKR, the US private equity firm which holds positions in several re/insurance companies including a 25 percent stake in Nephila Capital, has acquired majority ownership of Sedgwick Claims Management Services, a provider of claims and productivity management solutions largely to the insurance and risk management industries.

The deal, worth $2.4 billion with the firm’s management also retaining a stake, buys out previous investors Hellman & Friedman and Stone Point Capital although Stone Point also remains a minority equity partner in the company.

“With the strategic resources of KKR now in our corner, the future of Sedgwick has never looked brighter,” said David North, president and CEO of Sedgwick. “Further, that our long-time partner Stone Point Capital has chosen to invest in Sedgwick for the third time demonstrates their confidence in our business model and industry-leading best practices.

“My colleagues and I look forward to collaborating with these two valued partners and building on our shared commitment to customer service and continued innovation in claims and productivity management.”

Tagar Olson, Member of KKR and head of its financial services investment practice, said: “Sedgwick has an exceptional management team and a strong track record of innovation and delivering technology-driven solutions for its clients. We look forward to supporting the company in its next stage of evolution and growth.”

Equity for KKR’s investment was provided principally by its North American XI private equity fund. UBS Securities, Deutsche Bank Securities, Morgan Stanley, Mizuho, KKR Capital Markets and MCS Capital Markets provided financing for the transaction.

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