North American private equity firm Atlas Partners is to make a $1bn investment in Sedgwick, a global provider of insurance claims management, loss adjusting and technology-enabled business solutions, in a deal that values the business at $13.2bn.
Sedgwick’s existing backers, including funds managed by global investment firm Carlyle (NASDAQ: CG) and by Stone Point Capital LLC, will remain as investors and continue to make significant new investments in the business, with Carlyle maintaining its control position in partnership with the investor group and the Sedgwick management team.
Toronto based Sedgwick, which all has an office in New York, was valued at $6.7bn when Carlyle made its initial investment in the firm in 2018.
In 2023, Sedgwick handled more than eight million claims and had fiduciary responsibility for claim payments totalling more than $3bn.
Morgan Stanley & Co. LLC and BofA Securities served as financial advisors and Latham & Watkins LLP served as legal advisor to Sedgwick. JP Morgan Securities LLC and Barclays served as financial advisors and Kirkland & Ellis served as legal advisor to Altas.
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
