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Sedgwick attracts Carlyle, Hellman & Friedman: Reuters
Posted on Wednesday, 12 September 2018 09:36
Two private equity houses are competing to acquire Sedgwick Claims Management Services via a multi-billion-dollar deal that would provide an exit for KKR, Stone Point Capital and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), Reuters reported.
According to sources with knowledge of the auction, Carlyle has topped an earlier bid for the US’s largest insurance claims company tabled by Hellman & Friedman by offering more than USD 6.00 billion, including debt.
The people, who declined to be identified as the matter is private, noted the three owners are aiming to seal a deal with an acquiror as early as this week, though none of the backers commented when contacted by Reuters.
Founded in 1969, Sedgwick has grown into a global provider of technology-enabled risk, benefits and integrated business solutions with 21,000 staff, located in 65 countries.
Private equity firms have been attracted to the company for decades; Marsh & McLennan bought the group in 1998 and sold a 40.0 per cent stake to Stone Point Capital’s Trident II fund a year later.
Fidelity National Financial, along with Thomas H Lee Partners and Evercore Capital Partners as equity investors, took over Sedgwick in 2006 for USD 635.00 million before selling up some four years later for USD 1.10 billion, including debt.
Then-owners Stone Point and Hellman & Friedman later sold a majority stake to KKR and management for USD 2.40 billion in 2014, and CDPQ came on as a minority backer in 2016 following a USD 500.00 million investment.
Over this timeframe, Sedgwick has been on the acquisition trail – buying the likes of Speciality Risk Services, Cambridge Integrated and OSG Outsource.
However, it was the purchase of Cunningham Lindsey in April 2018 that expanded the company’s footprint from some 275 offices in the US, Canada, the UK and Ireland to a total of 65 countries.
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