GAB Robins, the giant Parsippany, N.J.-based claims adjusting firm, announced today it had sold its international subsidiaries to Cunningham Lindsey Group Ltd., and is in talks to reduce the company’s stake in its United Kingdom operation.
The sale to Cunningham Lindsey–a Chicago-based adjusting and claims management company–includes the GAB forensic engineering firm EFI Global. Financial details of the transaction were not released.
Regarding its U.K. operations, GAB Robins said its majority owner, Brera Capital Partners LP, is in advanced discussions with the management of the company’s United Kingdom business whereby management would become the majority owner of GAB Robins UK Ltd.
Explaining its action, GAB Robins said in a statement that the decision to sell its international and engineering units would “allow the firm to further focus on its core strengths in the North American property and casualty market while continuing to meet the global loss adjusting needs of its customers.”
Edward G. Troy, chairman and chief executive officer at GAB Robins Group of Companies, said the firm is “excited about the prospect of focusing our full energies on North America.”
Cunningham Lindsey said the acquisition will further its position as a leading provider of loss adjusting and claims management services to the global insurance markets.
David Repinski, CEO of Cunningham Lindsey U.S., said the combination of the two firms greatly adds to Cunningham Lindsey’s presence. “We were number-one in the U.K., and now we’re number-one in Australia, New Zealand and China.
GAB Robins’ international businesses include operations in France, the Netherlands, Belgium, Ireland, South Africa, Australia, New Zealand, Malaysia, Taiwan, Hong Kong and China.
Cunningham Lindsey said the combined business will have a global operating platform with over 600 offices and 5,600 employees in more than 70 countries.
Led by its Executive General Adjusters team and National General Adjusters, GAB Robins North America handle claims in the United States and internationally. The company’s North American third-party administration business provides workers’ compensation, casualty and related claims services in 50 states.
MedInsights, GAB Robins’ managed care subsidiary, specializes in medical cost containment and return-to-work programs for workers’ comp and other lines. In 2008, the company established GAB Robins Aviation LLC, which provides aviation industry loss adjustment and claims management
Both firms are private, but Cunningham Lindsey, while public in 2006, reported consolidated revenue of $421 million in Canadian currency. The firm, in addition to group headquarters in Chicago, has operations based in Dallas, Toronto, Redding, England, London and Amsterdam.
Cunningham Lindsey said the business of the two firms is complementary, with minimal geographic, operational and client base overlap. The firm said the deal would enhance its position as a provider of choice for large multinational corporations, major insurance carriers and brokers seeking global service.
The combined company will operate under the Cunningham Lindsey brand identity, while EFI Global will continue to use its name.
Philippe B?s, formerly president of the international operations of GAB Robins, has been appointed as CEO of the Cunningham Lindsey Group. Mr. B?s said the merger “will provide our customers with expanded service capabilities and expertise while presenting employees of both companies with enhanced opportunities.”
Cunningham Lindsey is majority-owned by Stone Point Capital LLC, a leading private equity firm specializing in the global insurance and financial services sectors. Stone Point acquired its interest in Cunningham Lindsey in December 2007.
Charles A. Davis, Stone Point Capital CEO, said his firm has “been impressed with the track record of successful growth and innovation embodied by this group of companies. We welcome GAB Robins and EFI Global management as partners in the combined business.”
EFI Global will continue to offer forensic engineering, fire investigation, environmental and specialty consulting services in the United States.
Brera Capital Partners LP will continue to own the loss adjusting businesses of GAB Robins in the United Kingdom and the United States, as well as third-party administration operations in the United States.
StoneRidge Advisors, LLC and Merrill Lynch & Company acted as financial advisors to Cunningham Lindsey on the transaction, while GAB Robins had Credit Suisse as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor.
(Daniel Hays can be contacted at firstname.lastname@example.org, or 201 526-1245.)