MEMPHIS, Tenn. and NEW YORK, Sept. 12,
2018 /PRNewswire/ -- Sedgwick, a global provider of
technology-enabled risk, benefits and integrated business
solutions, announced today that affiliates of funds managed by The
Carlyle Group (NASDAQ: CG) have agreed to become the majority owner
of Sedgwick in a transaction valued at approximately $6.7 billion. Current majority shareholder KKR
will fully exit its position following the transaction. Funds
managed by Stone Point Capital LLC and Caisse de dépôt et placement
du Québec (CDPQ), together with Sedgwick management, will remain
minority investors.
"At Sedgwick, taking care of people is at the heart of
everything we do, and I am proud that The Carlyle Group appreciates
the value our colleagues create when they put our caring
counts® philosophy into practice," said Dave North, president and CEO of Sedgwick. "We
are humbled by the confidence they have shown in our business
model, and we look forward to partnering with Carlyle on developing
and delivering innovative solutions for our clients around the
world. We are grateful for the strong and value-added partnership
with KKR over the last handful of years."
On an annual basis, Sedgwick handles more than 3.6 million
claims and has fiduciary responsibility for claim payments totaling
more than $19.5 billion.
Stephen H. Wise, Managing
Director and Global Head of Healthcare for The Carlyle Group, said,
"Dave North and Sedgwick's
world-class management team have built the company into an industry
leader over the last two decades. We are excited to collaborate
with Sedgwick, which has distinguished itself by constantly
improving the claims management and loss adjusting process to the
benefit of all key stakeholders, including its colleagues,
customers, insurance companies and brokers."
"We are pleased to partner with the exceptional management team
and highly talented colleagues of Sedgwick. We look forward to
participating in Sedgwick's next chapter of growth and innovation
and working with the company as it builds out its global platform
to meet the increasingly complex needs of its clients around the
world, while leveraging the One Carlyle network," said John C. Redett, Carlyle Managing Director and
Co-head of Global Financial Services.
"We have greatly valued our partnership with Sedgwick and its
exceptional management team," said Tagar Olson, director of
Sedgwick, Member of KKR, and head of KKR's financial services
investing efforts. "We look forward to watching the company's
continued success in delivering high quality technology-driven
insurance solutions to clients and consumers around the globe."
The parties are working to close the deal later this year,
subject to customary closing conditions, including regulatory
approvals.
Equity capital for the investment will come from Carlyle
Partners VII, an $18.5 billion fund
that focuses on buyout transactions in the U.S., and Carlyle Global
Financial Services Partners III, L.P., a dedicated financial
services buyout fund.
BofA Merrill Lynch served as financial advisor to Sedgwick, and
Simpson Thacher & Bartlett LLP served as legal advisor. BofA
Merrill Lynch, Morgan Stanley and KKR Capital Markets are expected
to provide debt financing for the transaction. Morgan Stanley and
Sandler O'Neill + Partners, L.P. served as financial advisors to
Carlyle, and Wachtell, Lipton, Rosen & Katz served as legal
advisor.
About Sedgwick
Sedgwick is a leading global provider
of technology-enabled risk, benefits and integrated business
solutions. The company provides a broad range of resources tailored
to clients' specific needs in casualty, property, marine, benefits
and other lines. At Sedgwick, caring counts®; through the
dedication and expertise of more than 21,000 colleagues across 65
countries, the company takes care of people and organizations by
mitigating and reducing risks and losses, promoting health and
productivity, protecting brand reputations, and containing costs
that can impact the bottom line. For more, see sedgwick.com.
About The Carlyle Group
The Carlyle Group
(NASDAQ: CG) is a global alternative asset manager with
$210 billion of assets under
management across 335 investment vehicles. Carlyle's purpose is to
invest wisely and create value on behalf of its investors, many of
whom are public pensions. Carlyle invests across four segments –
corporate private equity, real assets, global credit and investment
solutions – in Africa,
Asia, Australia, Europe, the Middle
East, North America and
South America. Carlyle has
expertise in various industries, including aerospace, defense and
government services, consumer and retail, energy, financial
services, health care, industrial, real estate, technology and
business services, telecommunications and media, and
transportation. The Carlyle Group employs more than 1,625 people in
31 offices across six continents.
Web: www.carlyle.com
Videos:
www.youtube.com/onecarlyle
Tweets:
www.twitter.com/onecarlyle
Podcasts:
www.carlyle.com/about-carlyle/market-commentary
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SOURCE Sedgwick