Memphis-based Sedgwick Claims Management Services Inc. has been sold to an investor group for $1.1 billion.

Greenwich, Conn.-based Stone Point Capital LLC and San Francisco-based Hellman & Friedman LLC acquired 100 percent ownership of Sedgwick CMS in a deal announced this morning.

“We are excited to be partnering with Stone Point and Hellman & Friedman for the next stage of Sedgwick CMS’s growth,” said Sedgwick CEO David A. North. “Stone Point and Hellman & Friedman share our vision for continuing the growth of Sedgwick CMS through focusing on our clients and delivering highly responsive, cost-effective claims and productivity management solutions.”

Sedgwick, a claims and productivity management services company, was owned by a group of investors that included Fidelity National Financial Inc., Thomas H. Lee Partners L.P., Evercore Capital Partners and other minority shareholders.

The transaction is expected to be complete in second-quarter 2010 following regulatory approvals and conditions. Bank of America, Merrill Lynch and Barclays Capital have financed the transaction.

“We have known Dave North and the Sedgwick CMS management team for many years and were one of the firm’s investors at an earlier stage of their development,” said Stone Point Capital CEO Charles A. Davis. “We are delighted to invest again with Dave and his colleagues and look forward to working closely with them to continue their success and take the business to the next level.”

Sedgwick employs 6,500 in 150 locations in the U.S and Canada. The company specializes in workers’ compensation, disability, Family Medical Leave Act and other employee absence programs. It also works in general, automobile and professional liability, warranty and credit card claims services as well as Medicare compliance.

Similar Posts:

Share