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Investment firm KKR to acquire majority ownership of Sedgwick Claims Management Services


January 27, 2014   by Canadian Underwriter


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Global investment firm KKR has signed an agreement to acquire majority ownership of Sedgwick Claims Management Services for approximately $2.4 billion from its current group of investors, which includes Hellman & Friedman LLC and Stone Point Capital LLC.

 “We couldn’t ask for a better partner in the next stage of Sedgwick’s evolution,” David A. North, president and CEO of Sedgwick commented in the announcement Monday. “KKR has an exceptional record of investing in financial services companies and will be a valuable strategic resource for our organization. We share a commitment to continued innovation in the claims and productivity management industry. My colleagues and I look forward to collaborating with KKR as we develop solutions for the changing needs of our clients.”

“This is a critical time for employers as they adjust to an evolving health care delivery model, the shifting demographics of the workforce and a multitude of additional challenges,” Tagar Olson, member of KKR and head of its financial services investment practice added in the press release.

“Sedgwick has an exceptional management team, a strong track record of innovation and the technology-driven solutions to address these challenges. We believe our partnership will enable them to maintain and enhance their leadership position in the industry.”

With 11,000 colleagues operating from 200 offices located in the U.S. and Canada, Sedgwick and its affiliated companies deliver claims, productivity, managed care, risk consulting and other services.

Sedgwick handles more than 2.1 million claims annually and has fiduciary responsibility for claim payments totaling more than $11 billion.

The transaction is expected to close during the first quarter of 2014, subject to customary conditions and regulatory approvals.

Last September, KKR also entered into an agreement to gain ownership of Mitchell International, a technology provider for the property and casualty claims and collision repair industries.