Jan 27 Sedgwick Claims Management Services Inc
said KKR & Co LLP and company management would buy the
provider of claims services for $2.4 billion, the latest in a
wave of private-equity activity in the growing industry.
A rising number of claims has attracted private equity
interest in the sector over the last two years.
KKR's deal to buy Sedgwick from private equity firms Stone
Point and Hellman & Friedman is its second in the industry in
KKR said in September it would acquire car and property
claims software company Mitchell International Inc from
Los-Angeles buyout firm Aurora Capital.
That deal was valued at $1.1 billion, according to a person
familiar with the matter.
Apax Partners LLP agreed in October to buy One Call Care
Management Inc, a medical cost containment services company, and
Align Networks Inc, a provider of workers' compensation physical
medicine programs, in deals that had a combined value of about
Founded in 1969, Memphis-based Sedgwick is a major provider
of claims processing services, specializing in workers'
compensation, disability, automobile, warranty, credit card and
Sedgwick last changed ownership in May 2010, when Stone
Point and Hellman & Friedman, together with the company's
management, acquired it from Fidelity National Financial Inc
, Thomas H. Lee Partners LP, Evercore Capital Partners
and other minority shareholders.
Reuters reported in December that Sedgwick was exploring a
Sedgwick said the deal was expected to close in the first
quarter of 2014.