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Cunningham Lindsey, investor group recapitalization deal closes


December 11, 2012   by Canadian Underwriter


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Claims adjusting and management firm Cunningham Lindsey Group has announced the closing of its previously announced recapitalization by investor group CVC Capital Partners.

DealTerms of the transaction, which was previously announced on Oct.1, 2012, were not disclosed.

Read more: Investor group to buy Cunningham Lindsey

Funds affiliated with CVC, an investor group that includes Allied World Financial Services, have now acquired majority ownership of Cunningham Lindsey from existing shareholders Stone Point Capital and Fairfax Financial Holdings.

Stone Point and Fairfax will remain “substantial and active shareholders,” according to Cunningham Lindsey.

The closing of the deal has allowed Fairfax proceeds of approximately $270 million, it noted in a statement. Its interest in Cunningham Lindsey was carried in its financial statements at approximately $110 million.

Fairfax has re-invested approximately $34 million of the closing proceeds into shares of Cunningham Lindsey in order to retain an equity interest in the company of approximately 9%, it noted in a company statement.

“We look forward to supporting the global growth strategy of Cunningham Lindsey and working with its management and existing investors to continue to be a highly valued service partner for the company’s clients,” Kamil Salame, CVC partner and head of the U.S. Financial Institutions Group commented in a separate statement.


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