Carlyle Group Completes Acquisition of Majority Ownership in Sedgwick

155

The Carlyle Group Global is now the majority owner of claims and technology services firm Sedgwick. Funds managed by Carlyle completed an ownership transaction that is valued at approximately $6.7 billion on Dec. 31.

Previous majority shareholder KKR is fully exiting its position. KKR and company management paid $2.4 billion in 2014 to buy Sedgwick.
The funds managed by Stone Point Capital and Caisse de dépôt et Québec (CDPQ) remain together with the Sedgwick management as minority investors.

The equity capital of the investment is based on Carlyle Partners VII, a $ 18.5 billion fund focused on US procurement transactions and Carlyle Global Financial Services Partners III, L.P., a financial services procurement fund.

The parties announced their plans for the agreement in September.

Sedgwick reported that he handled more than 3.6 million requests on an annual basis, and that he has a confidence obligation to pay a total demand of more than $ 19.5 billion.

BofA Merrill Lynch, KKR Capital Market, Morgan Stanley and SunTrust Robinson Humphrey, Inc., served as joint lead arranger and partner notebook for debt financing. BNP Paribas, Citizen Bank, N.A., MUFG, Fifth Third Bank, ING Capital, GIC Special Markets, HPS Investment Partners, LLC, Oak Hill Advisors, L.P. and PSP Investments Credit USA also provided debt financing for the transaction.

BofA Merrill Lynch was Sedgwick’s financial advisor, and Simpson Thacher & Bartlett as its legal advisor. Morgan Stanley and Sandler O’Neill + Partners worked as financial adviser to Carlyle, Wachtell, Lipton, Rosen & Katz as legal counsel.

The Carlyle Group is a global alternative asset manager.

Legal warning !
The information, comments and suggestions there are not covered by investment advice. It is based on the author's personal opinions. These views may not fit your financial situation and risk and return preferences. For this reason, based solely on this information, investment decisions may not have the appropriate consequences for your expectation. Our Site is not responsible for any direct or indirect damages incurred by the investors as a result of the use of the information on the Site, deficiencies in the sources, damages incurred by profit, moral damages, or damage to third parties.