Stone Point Capital and Hellman & Friedman have agreed to acquire Sedgwick Claims Management Services Inc., a Temphis, Tenn.-based provider of claims and productivity management solutions to corporate and institutional clients. The deal is valued at $1.1 billion, with sellers including Fidelity National Financial, THL Partners and Evercore Capital Partners.
Sedgwick Claims Management Services, Inc. (Sedgwick CMS), a leading provider of claims and productivity management solutions to corporate and institutional clients, today announced that funds affiliated with Stone Point Capital LLC and Hellman & Friedman LLC, together with management, have signed an agreement to acquire 100 percent ownership of Sedgwick CMS for approximately $1.1 billion from its current group of investors which includes Fidelity National Financial, Inc., Thomas H. Lee Partners, L.P., Evercore Capital Partners and other minority shareholders.
“We are excited to be partnering with Stone Point and Hellman & Friedman for the next stage of Sedgwick CMS’s growth. Both firms have exceptional records investing in financial services companies and will be valuable strategic partners for our company,” said Sedgwick CMS President and Chief Executive Officer 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. Our clients will continue to receive the same outstanding attention from dedicated Sedgwick CMS colleagues.”
“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 Charles A. Davis, CEO of Stone Point Capital. “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. We also look forward to this partnership with Hellman & Friedman. We know them well and have worked with them successfully on previous investments.”
“Hellman & Friedman is excited to partner with the Sedgwick CMS organization,” said David R. Tunnell, Managing Director of Hellman & Friedman. “We share their commitment to strong customer relationships and look forward to supporting them as they continue to build on their leading market position. Sedgwick CMS is an ideal fit with our focus of investing in companies with defensible and enduring business franchises.”
The transaction is expected to close during the second quarter of 2010, subject to usual and customary conditions and the receipt of regulatory approvals. Bank of America Merrill Lynch and Barclays Capital have provided commitments to finance the transaction.
About Sedgwick CMS
Sedgwick Claims Management Services, Inc. is the leading North American provider of innovative claims and productivity management solutions. Sedgwick CMS and its affiliated companies deliver cost-effective claims administration, medical management, risk consulting and related services to clients through the expertise of 6,500 colleagues in a hundred and fifty offices and service locations in the U.S. and Canada. The company specializes in workers’ compensation; disability, FMLA and other employee absence; and general, automobile and professional liability; and warranty and credit card claims services as well as Medicare compliance solutions. Sedgwick CMS and its affiliates design and implement customized programs based on proven practices that meet client needs. For more see http://www.sedgwickcms.com.
About Hellman & Friedman
Hellman & Friedman LLC is a leading private equity investment firm with offices in San Francisco, New York and London. Since its founding in 1984, Hellman & Friedman has raised over $25 billion of committed capital. The firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including business services, insurance, financial services, software, internet and digital media, media, healthcare, energy and industrials. Representative investments in insurance services include Emdeon Business Services, SSP Holdings plc and Vertafore, Inc. For more information on Hellman & Friedman, visit www.hf.com.
About Stone Point Capital
Stone Point Capital is a global private equity firm based in Greenwich, Connecticut. Stone Point serves as the manager of the Trident Funds, which have raised more than $10 billion in committed capital to make investments in the insurance, employee benefits and financial services industries. Stone Point has a 25-year record of making successful investments in the financial services industry, including in the insurance services sector. For further information about Stone Point, see www.stonepoint.com.