Stone Point, Hellman & Friedman-backed Sedgwick Claims Management Services explores over $2B sale

By VCPOST Staff Reporter | Dec 20, 2013 11:31 PM EST
Image shows a screenshot of Sedgwick Claims Management Services Inc.'s website. (Photo : Sedgwick Claims Management Services Inc.)

Tennessee-based Sedgwick Claims Management Services Inc. is exploring a sale that could value it at more than $2 billion, sources told Reuters. Sedgwick is one of the largest providers of claims services in the US.

Sources said on Friday that Sedgwick has approached a small group of private equity buyers to gauge their interest. The claims services company was acquired by private equity firms Stone Point Capital LLC and Hellman & Friedman LLC for about $1.1 billion in 2010, the report said. 

According to Reuters sources, Sedgwick has annual earnings before interest, taxes, depreciation and amortization (EBITDA) of a little over $200 million. Its owners are seeking 12 times its EBITDA in a sale.

Sedgwick is a major provider of claims processing and productivity management services. It specializes in workers' compensation, disability, automobile and professional liability, warranty and credit card claims services and healthcare, the report said.

Sedgwick last changed ownership in May 2010, when Stone Point and Hellman & Friedman acquired it from Fidelity National Financial Inc., Thomas H. Lee Partners LP and Evercore Capital Partners, Reuters said. 

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