NU Online News Service, April 20, 12:25 p.m. EDT
Sedgwick Claims Management Services Inc. announced that it will be acquired for $1.1 billion by investment funds affiliated with Stone Point Capital LLC and Hellman & Friedman LLC.
The Memphis, Tenn.-based claims service giant, that provides claims and productivity management solutions to corporate and institutional clients, said a signed agreement transfers 100 percent ownership from its current group of investors which includes Fidelity National Financial Inc., Thomas H. Lee Partners, L.P., Evercore Capital Partners and other minority shareholders.
“We are excited to be partnering with Stone Point and Hellman & Friedman for the next stage of Sedgwick CMS’s growth. Both firms have exceptional records investing in financial services companies and will be valuable strategic partners for our company,” said Sedgwick CMS President and Chief Executive Officer David A. North.
He said in his statement: “Stone Point and Hellman & Friedman share our vision for continuing the growth of Sedgwick CMS through focusing on our clients and delivering highly responsive, cost-effective claims and productivity management solutions. Our clients will continue to receive the same outstanding attention from dedicated Sedgwick CMS colleagues.”
Charles A. Davis, CEO of Stone Point Capital, said his firm has “known Dave North and the Sedgwick CMS management team for many years and were one of the firm’s investors at an earlier stage of their development. We are delighted to invest again with Dave and his colleagues, and look forward to working closely with them to continue their success and take the business to the next level.”
He added, “We also look forward to this partnership with Hellman & Friedman. We know them well and have worked with them successfully on previous investments.”
“Sedgwick CMS is an ideal fit with our focus of investing in companies with defensible and enduring business franchises,” said David R. Tunnell, managing director of Hellman & Friedman.
The transaction is expected to close during the second quarter of 2010, subject to usual and customary conditions and the receipt of regulatory approvals. Bank of America Merrill Lynch and Barclays Capital have provided commitments to finance the transaction.
Sedgwick CMS and affiliated companies provide claims administration, medical management, risk consulting and related services to clients with a staff of 6,500 in 150 offices and service locations in the U.S. and Canada.
The company specializes in workers’ compensation; disability, Family and Medical Leave Act, and other employee absence; general, automobile and professional liability; and warranty and credit card claims services as well as Medicare compliance solutions.
Sedgwick CMS and its affiliates design and implement programs customized for clients (http://www.sedgwickcms.com).
Hellman & Friedman LLC is headquartered in San Francisco, Stone Point Capital is based in Greenwich, Conn. Stone Point serves as the manager of the Trident Funds,