This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

KKR Acquires Sedgwick Claims in $2.4B Deal

Stocks in this article: KKR

NEW YORK ( The Deal) -- Insurance processing firm Sedgwick Claims Management Services is changing hands for the third time since 2006, agreeing to be acquired by private equity firm Kohlberg Kravis Roberts & Co. (KKR) for $2.4 billion in cash.

Memphis-based Sedgwick said that KKR along with management would acquire the firm from owners Hellman & Friedman LLC and Stone Point Capital LLC. Equity is being provided by KKR's North American XI fund, with UBS Securities LLC, Deutsche Bank Securities, Morgan Stanley, Mizuho, KKR Capital Markets LLC and MCS Capital Markets LLC on board to provide financing for the transaction.

Sedgwick is a provider of claim management systems specializing in tools that manage workers' compensation, disability, managed care, liability, fraud and warranty claims.

On an annual basis, Sedgwick handles more than 2.1 million claims and has fiduciary responsibility for claim payments totaling more than $11 billion.

KKR head of financial services investments Tagar Olson in a statement called it a "critical time for employers as they adjust to an evolving health care delivery model, the shifting demographics of the workforce and a multitude of additional challenges," and said that Sedgwick is well positioned to capitalize from these changes.

"Sedgwick has an exceptional management team, a strong track record of innovation and the technology-driven solutions to address these challenges," Olson said.

This is KKR's second claim management deal in recent months, following its September agreement to acquire San Diego-based Mitchell International from Aurora Capital Group for more than $1 billion.

Sedgwick CEO David A. North said "we couldn't ask for a better partner in the next stage of Sedgwick's evolution," saying that KKR "has an exceptional record of investing in financial services companies and will be a valuable strategic resource for our organization."

Sedgwick was acquired by Stone Point and Hellman in 2010 for $1.1 billion from Fidelity National Financial Inc., Thomas H. Lee Partners LP and Evercore Capital Partners, which had acquired the company in 2006 for $635 million. Stone Point has owned the business twice. The firm along with insurer Marsh & McLennan Cos. owned Sedgwick prior to its 2006 sale to the Fidelity National-led group.

Simpson Thacher & Bartlett LLP and Latham & Watkins LLP provided legal counsel to Sedgwick and KKR, respectively. Sedgwick management was represented by a Willkie Farr & Gallagher LLP team that included partners Jordan Messinger and Thomas Mark.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs