KKR acquires Sedgwick Claims Management for $2.4bn


money dollar lend borrowKKR has acquired a majority stake in claims processing specialist Sedgwick Claims Management Services for $2.4bn from fellow private equity firms Hellman & Friedman and Stone Point Capital.

Sedgwick currently handles more than 2.1m claims per year and has responsibility for claim payments of over $11bn.

KKR said that equity for the investment was provided mostly by its North American XI private equity fund.

Hellman & Friedman and Stone Point paid $1.1bn for Sedgwick in 2010, buying it from private equity firms Thomas H Lee Partners and Evercore Capital Partners

Head of KKR’s financial services investment practice Tagar Olson said, “This is 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.

“Sedgwick has an exceptional management team, a strong track record of innovation and the technology-driven solutions to address these challenges. We believe our partnership will enable them to maintain and enhance their leadership position in the industry.”

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