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.
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