Loss adjusting and claims management firm Cunningham Lindsey Group and a CVC Capital Partners-led investor group including Allied World Financial Services have agreed to a recapitalisation by which funds affiliated with CVC will acquire majority ownership of Cunningham Lindsey.
Founded more than 100 years ago, Cunningham Lindsey has grown organically and through acquisitions into the largest loss adjusting and claims management firm globally with a network of approximately 7,000 people operating in 61 countries.
In 2007, affiliates of Stone Point Capital acquired a majority interest in the company via a public-to-private transaction, with Fairfax Financial Holdings retaining a substantial ownership position.
Following the CVC recapitalisation, the existing Cunningham Lindsey management team, led by chief executive officer Philippe Bès, will continue to manage the company and Bès will join the company’s board of directors.
Stone Point and Fairfax, along with the company’s management team, will remain substantial and active shareholders, supporting Cunningham Lindsey as it enters the next phase of execution of its global growth strategy.
“We are excited to welcome CVC as our new majority investor,” says Bès. “CVC shares our vision for the future expansion of Cunningham Lindsey, and together with our long-standing partners Stone Point and Fairfax, will enable us to continue to expand and enhance our position in the key insurance markets. CVC’s diversified international coverage will be a tremendous asset to capitalize on as we broaden our global presence supporting the unique capabilities and expertise that our clients need.”
Kamil Salame (pictured), CVC partner and head of the US financial institutions group, says: “Cunningham Lindsey is recognised as the best-in-class provider of loss adjusting and claims management services to the global insurance market. We look forward to bringing our global network and resources to the Company and working with its highly-regarded leadership team and existing investors to build upon all that they have accomplished.”
“Cunningham Lindsey has experienced significant growth in revenue and profitability since our initial investment in 2007,” adds Charles A. Davis, chief executive officer of Stone Point Capital. “We want to thank Fairfax and its CEO Prem Watsa for choosing us to be their partners in this investment. We also want to thank Cunningham Lindsey’s management team for the outstanding performance that it has delivered. We are excited to remain as a continuing equity owner alongside Fairfax and CVC, two firms that we have known and respected for many years.”
Completion of the transaction is subject to certain customary closing conditions, including, among other things, regulatory approvals.
