KKR & Co., the private-equity firm run by Henry Kravis and George Roberts, agreed to buy a majority stake in Sedgwick Claims Management Services Inc. from Hellman & Friedman LLC and Stone Point Capital LLC for $2.4 billion.
The deal is scheduled to close in the first quarter, subject to regulatory approval, according to a statement today from Memphis-based Sedgwick. KKR, based in New York, will use its North American XI fund to finance the equity investment.
The acquisition is KKR’s second in about four months of a company that processes claims related to workers’ compensation, auto collisions and unemployment. KKR in September agreed to buy Mitchell International Inc. from private-equity firm Aurora Capital Group in a transaction valued at about $1.1 billion including debt, a person with knowledge of the deal’s value said at the time.
UBS Securities LLC, Deutsche Bank Securities, Morgan Stanley, Mizuho, KKR Capital Markets LLC and MCS Capital Markets LLC provided financing for the transaction, according to the statement.
For more coverage on insurance M&A, see "Racking Up Regional Insurers" - an interview with Doug Hammond, chairman and CEO of NFP Corp.