Altas Partners joins Carlyle and Stone Point
Capital as strategic investors Investment will foster
continued growth of global claims management provider
MEMPHIS, Tenn.,
Sept. 12,
2024 /PRNewswire/ -- Sedgwick, a leading global
provider of claims management, loss adjusting and
technology-enabled business solutions, announced a strategic
investment from Altas Partners ("Altas"), a North American private
equity firm. Current investors, including funds managed by global
investment firm Carlyle (NASDAQ: CG) and by Stone Point Capital
LLC, will remain as investors and continue to make significant new
investments in the business, with Carlyle maintaining its control
position in partnership with the investor group and the Sedgwick
management team.
This transaction implies a total enterprise value of
approximately $13.2 billion, an
increase from $6.7 billion when
Carlyle made its initial investment in Sedgwick in 2018. Altas has
committed to invest $1 billion of
equity as part of the transaction and will be an active participant
in the company's value creation journey going forward.
"This new partnership with Altas, and our current
stakeholders, brings together a strategic vision that builds our
global footprint, expands comprehensive service capabilities
and enhances our business for decades to come," said
Mike Arbour, CEO of Sedgwick. "Altas
has a history of actively supporting companies in its portfolio,
and they are very knowledgeable in the challenges our clients face
in today's competitive business environment. We look forward to
leveraging their expertise as informed and engaged strategic allies
as we continue to lead the industry in innovation and enable
clients to thrive by helping them navigate the unexpected."
"We are incredibly proud of the growth Sedgwick has achieved
under our ownership," said Will
McMullan, Partner and co-Head of Global Financial Services
at Carlyle. "As we welcome Altas to the partnership, we are excited
about the future and look forward to supporting Sedgwick's
continued growth and innovation. Together, with our new and
existing partners, we are committed to further enhancing Sedgwick's
industry-leading capabilities and global footprint."
"Sedgwick is an exceptional company, led by a terrific team,
that we have coveted for many years" said Paul Emery, Partner at Altas. "Our strategy is
incredibly selective; we only invest in businesses that possess the
rare combination of quality, durability and meaningful line of
sight for growth. These opportunities are hard to come by, and a
business like Sedgwick fits squarely within our framework. We are
excited to work in close partnership with Mike Arbour and team to support the many value
creation opportunities that lie ahead."
Jim Carey, Co-CEO of Stone Point
said, "we have known the Sedgwick leadership team for many years
and are thrilled to continue the partnership alongside Carlyle and
Altas. Sedgwick is a leader in the risk, loss adjusting and claims
management industries, and we look forward to supporting the
company's mission in its next stage of growth."
Every year, millions of people around the world contact Sedgwick
when they face an unsettling, unfamiliar or stressful event —
whether a catastrophe, an accident, an absence request or claim
scenario. In 2023, Sedgwick handled more than eight million claims
and had fiduciary responsibility for claim payments totaling more
than $33 billion. The company will
remain an independent, private company with an undiluted focus on
claims handling excellence, use of robust data science and
technological innovation.
Morgan Stanley & Co. LLC and BofA Securities served as
financial advisors and Latham & Watkins LLP served as legal
advisor to Sedgwick. J.P. Morgan Securities LLC and Barclays served
as financial advisors and Kirkland & Ellis served as legal
advisor to Altas.
The transaction is expected to close in the fourth quarter of
2024, subject to customary closing conditions.
About Sedgwick
Sedgwick is a leading global provider of claims management, loss
adjusting and technology-enabled business solutions. The company
provides a broad range of resources tailored to clients' specific
needs in casualty, property, marine, benefits, brand protection and
other lines. At Sedgwick, caring counts; through the dedication and
expertise of over 33,000 colleagues across 80 countries, the
company takes care of people and organizations by mitigating and
reducing risks and losses, promoting health and productivity,
protecting brand reputations, and containing costs that can impact
performance. Sedgwick's majority shareholder is The Carlyle Group;
Stone Point Capital LLC, Caisse de dépôt et placement du Québec
(CDPQ), Onex and other management investors are minority
shareholders. For more, see sedgwick.com.
About Altas Partners
Altas Partners is a North
American private equity firm focused on selectively acquiring
significant interests in high-quality businesses with
meaningful growth potential. Altas focuses on services
sub-sectors where it has deep expertise, seeking one or two
compelling investment opportunities each year. The firm's patient
investment philosophy and engaged approach to ownership
distinguish Altas as a buyer of choice
for many management teams and founders. The
firm was founded in 2012 and operates from offices in
Toronto and New York.
Altas manages approximately $10 billion on behalf of
leading institutional and family office investors from around the
world. For more, visit altas.com.
About Carlyle
Carlyle (NASDAQ: CG) is a global
investment firm with deep industry expertise that deploys private
capital across its business and conducts its operations through
three business segments: Global Private Equity, Global Credit and
Global Investment Solutions. With $435
billion of assets under management as of June 30, 2024, Carlyle's purpose is to invest
wisely and create value on behalf of its investors, portfolio
companies and the communities in which we live and invest. Carlyle
employs more than 2,200 people in 29 offices across four
continents. Further information is available at carlyle.com. Follow
Carlyle on X @OneCarlyle and LinkedIn at The Carlyle
Group.
About Stone Point Capital
Stone Point is an alternative investment firm
based in Greenwich, Connecticut,
with more than $50 billion of assets
under management. Stone Point
targets investments in companies in the global financial services
industry and related sectors. The firm invests in alternative asset
classes, including private equity through its flagship Trident
Funds and credit through commingled funds and separately managed
accounts. In addition, Stone Point Capital Markets supports the
firm, portfolio companies and other clients by providing dedicated
financing solutions. For more information, please
visit stonepoint.com.
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SOURCE Sedgwick Claims Management Services, Inc.