KKR to take control of Sedgwick Claims Management for $2.4 bln
Jan 27 (Reuters) - Sedgwick Claims Management Services Inc, one of the largest U.S. providers of claims services, said private equity firm KKR & Co LLP would acquire majority ownership of the company for about $2.4 billion.
Sedgwick is a major provider of claims processing services, specializing in workers' compensation, disability, automobile, warranty, credit card and healthcare claims.
The company, which was acquired by Stone Point and Hellman & Friedman in 2010 for about $1.1 billion, had approached a small group of private equity buyers to gauge their interest, Reuters reported in December, citing people familiar with the matter.
The deal with Sedgwick is KKR's second in the claims industry in recent months. In September, it said it would acquire car and property claims software company Mitchell International Inc from Los-Angeles based buyout firm Aurora Capital Group.
That deal was valued at $1.1 billion, according to a person familiar with the matter.
Sedgwick, which is based in Memphis, Tennessee, said on Monday the deal was expected to close in the first quarter of 2014.