(Adds details from release, background, shares)
July 16 Canadian private equity firm Onex Corp
said it would buy York Risk Services Group Inc, an
insurance claims services provider, for $1.33 billion.
York offers insurance solutions to more than 6,300 clients
in the property, casualty and workers' compensation specialty
markets in the United States.
The company has helped handle claims for each of the major
hurricanes to hit the United States in the past 40 years.
Onex's private equity investment platform, Onex Partners
III, will invest about $560 million in equity in the deal, along
with several co-investors, such as York's management team and
Onex itself, the company said.
Reuters reported earlier this month that York's owner,
private equity firm ABRY Partners, was in advanced talks with
Onex for a sale of the company.
Private equity firms have been buying up insurance services
providers in the recent past, attracted by their resilience in
KKR & Co LP, for instance, bought Sedgwick Claims
Management Services Inc for $2.4 billion from private equity
peer Hellman & Friedman LLC earlier this year.
The deal is expected to close in the third quarter, Onex
Toronto-based Onex's shares closed at C$63.85 on the Toronto
Stock Exchange on Tuesday.
(Reporting By Shubhankar Chakravorty in Bangalore; Editing by