KKR, together with management, has acquired majority ownership of Sedgwick Claims Management Services for USD2.4bn from previous investors Hellman & Friedman and Stone Point Capital.
Additionally, Stone Point Capital has joined the investment as a minority equity partner.
"With the strategic resources of KKR now in our corner, the future of Sedgwick has never looked brighter," says David A. North, president and CEO of Sedgwick. "Further, that our longtime 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."
"Sedgwick has an exceptional management team and a strong track record of innovation and delivering technology-driven solutions for its clients," says Tagar Olson, member of KKR and head of its financial services investment practice. "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. Simpson Thacher & Bartlett and Latham & Watkins provided legal counsel to Sedgwick and KKR, respectively.
"We have had a very successful partnership with Dave North and the Sedgwick team over the past four years," says David Tunnell, managing director of Hellman & Friedman. "We are proud of the value that Sedgwick has delivered and will continue to deliver for its clients, its colleagues and its shareholders."
"Stone Point has had the privilege of partnering with Sedgwick on two separate occasions during the last fifteen years," says Steve Friedman, chairman of Stone Point Capital. "We have a tremendous amount of respect for Dave North and the entire Sedgwick organisation and look forward to continuing as an investor through Trident V, LP alongside KKR."
