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Carlyle Group to purchase majority stake in Memphis-based insurer for $6.7B

Investment firm KKR & Co. Inc. made a $2.4 billion bet when it bought a majority stake in Memphis-based Sedgwick in 2014.

It looks like that bet paid off.

Sedgwick and D.C.-based The Carlyle Group (NASDAQ: CG) announced Wednesday that affiliates of funds managed Carlyle will buy out KKR to become the majority owner of Sedgwick for $6.7 billion. The deal is expected to close later this year.

“We look forward to partnering with Carlyle on developing and delivering innovative solutions for our clients around the world,” said David North, president and CEO of Sedgwick, in a release. “We are grateful for the strong and value-added partnership with KKR over the last handful of years.”

Sedgwick management, along with funds managed by Stone Point Capital LLC and Caisse de dépôt et placement du Québec (CDPQ), a pension fund company, will remain as minority shareholders in the company.

Sedgwick is a technology-enabled risk, benefits and integrated business solutions company that…

Read the full story from the Washington Business Journal.



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