Global alternative asset manager The Carlyle Group has completed its previously announced $6.7 billion deal to take a majority stake in Sedgwick, a global provider of technology-enabled risk and business solutions.
Sedgwick’s current majority shareholder, KKR, will fully exit its position following the acquisition, while funds managed by Stone Point Capital LLC and Caisse de dépôt et placement du Québec (CDPQ), together with Sedgwick management, will remain minority investors.
“At Sedgwick, taking care of people is at the heart of everything we do, and I am proud that The Carlyle Group appreciates the value our colleagues create when they put our caring counts philosophy into practice,” said Dave North, President and Chief Executive Officer (CEO) of Sedgwick.
“We are humbled by the confidence Carlyle has shown in our business model and look forward to partnering with them on developing and delivering innovative solutions for our clients around the world,” he continued.
Sedgwick handles more than 3.6 million claims every year and is responsible for claim payments totalling more than $19.5 million.
The Carlyle Group explained that equity capital for the investment came from Carlyle Partners VII, an $18.5 billion fund that focuses on buyout transactions in the U.S., as well as from Carlyle Global Financial Services Partners III, L.P., a dedicated financial services buyout fund.
BofA Merrill Lynch, KKR Capital Markets, Morgan Stanley, and SunTrust Robinson Humphrey, Inc. served as joint lead arrangers and joint bookrunners for the debt financing.
BNP Paribas, Citizens Bank, N.A., MUFG, Fifth Third Bank, ING Capital LLC, GIC Private Markets, HPS Investment Partners, LLC, Oak Hill Advisors, L.P. and PSP Investments Credit USA LLC also provided debt financing for the transaction
BofA Merrill Lynch served as financial advisor to Sedgwick during the transaction, and Simpson Thacher & Bartlett LLP served as legal advisor, while Morgan Stanley and Sandler O’Neill + Partners, L.P. served as financial advisors to Carlyle, and Wachtell, Lipton, Rosen & Katz served as legal advisor.