Sedgwick gets new majority owner in $6.7B deal

The deal will be finalized later this year.

The $6.7 billion deal will be finalized later this year. (Photo: Sedgwick)

Today, Sedgwick announced that affiliates of funds managed by global alternative asset manager The Carlyle Group have agreed to become the majority owner of Sedgwick, in a transaction valued at approximately $6.7 billion.

Each year, Sedgwick handles more than 3.6 million claims and has fiduciary responsibility for claim payments totaling more than $19.5 billion. The Carlyle Group is a global alternative asset manager with $210 billion of assets under management across 335 investment vehicles.

Current majority shareholder KKR will fully exit its position following the transaction. Together with Sedgwick management, funds managed by Stone Point Capital and Caisse de dépôt et placement du Québec will remain minority investors.

All involved parties are working to close the deal later this year, subject to customary closing conditions, including regulatory approvals.

Related: Around the P&C insurance industry: Sept. 12, 2018