KKR to invest in Sedgwick

 MEMPHIS, Tenn., Jan. 27, 2014 /CNW/ - Sedgwick Claims Management Services,  Inc., a leading provider of technology-enabled claims and productivity  management solutions, announced today that KKR, together with management, have  signed an agreement to acquire majority ownership of Sedgwick for  approximately $2.4 billion from its current group of investors, which includes  Hellman & Friedman LLC and Stone Point Capital LLC.  (Logo: http://photos.prnewswire.com/prnh/20120813/CL56657LOGO) (Logo:  http://photos.prnewswire.com/prnh/20140127/CL52861LOGO-b)  "We couldn't ask for a better partner in the next stage of Sedgwick's  evolution," said David A. North, president and CEO of Sedgwick. "KKR has an  exceptional record of investing in financial services companies and will be a  valuable strategic resource for our organization. We share a commitment to  continued innovation in the claims and productivity management industry. My  colleagues and I look forward to collaborating with KKR as we develop  solutions for the changing needs of our clients."  "This is a critical time for employers as they adjust to an evolving health  care delivery model, the shifting demographics of the workforce and a  multitude of additional challenges," said Tagar Olson, Member of KKR and head  of its financial services investment practice. "Sedgwick has an exceptional  management team, a strong track record of innovation and the technology-driven  solutions to address these challenges. We believe our partnership will enable  them to maintain and enhance their leadership position in the industry."  On an annual basis, Sedgwick handles more than 2.1 million claims and has  fiduciary responsibility for claim payments totaling more than $11 billion.  The transaction is expected to close during the first quarter of 2014, subject  to customary conditions and regulatory approvals.  Equity for the investment was provided principally by KKR's North American XI  private equity fund. UBS Securities LLC, Deutsche Bank Securities, Morgan  Stanley, Mizuho, KKR Capital Markets LLC and MCS Capital Markets LLC provided  financing for the transaction. Simpson Thacher & Bartlett LLP and Latham &  Watkins LLP provided legal counsel to Sedgwick and KKR, respectively.  About Sedgwick  Sedgwick Claims Management Services, Inc. is the leading North  American provider of technology-enabled claims and productivity management  solutions. Sedgwick and its affiliated companies deliver cost-effective  claims, productivity, managed care, risk consulting and other services to  clients through the expertise of more than 11,000 colleagues in some 200  offices located in the U.S. and Canada. The company specializes in workers'  compensation; disability, FMLA, and other employee absence; managed care;  general, automobile, and professional liability; warranty and credit card  claims services; fraud and investigation; structured settlements; and Medicare  compliance solutions. Sedgwick and its affiliates design and implement  customized programs based on proven practices and advanced technology that  exceed client expectations. For more, see www.sedgwick.com.  About KKR  Founded in 1976 and led by Henry Kravis and George Roberts, KKR is  a leading global investment firm with $90.2 billion in assets under management  as of September 30, 2013. With offices around the world, KKR manages assets  through a variety of investment funds and accounts covering multiple asset  classes. KKR seeks to create value by bringing operational expertise to its  portfolio companies and through active oversight and monitoring of its  investments. KKR complements its investment expertise and strengthens  interactions with investors through its client relationships and capital  markets platform. KKR is publicly traded on the New York Stock Exchange  (NYSE:KKR) and "KKR," as used in this release, includes its subsidiaries,  their managed investment funds and accounts, and/or their affiliated  investment vehicles, as appropriate. For additional information, please visit  KKR's website at www.kkr.com.  About Hellman & Friedman Hellman & Friedman LLC is a leading private equity  investment firm with offices in San Francisco, New York and London. Since its  founding in 1984, H&F has raised and, through its affiliated funds, managed  over $25 billion of committed capital. The Firm focuses on investing in  superior business franchises and serving as a value-added partner to  management in select industries including financial services, insurance,  software, business & marketing services, internet & digital media, media,  healthcare and energy & industrials. For more information on H&F, visit  www.hf.com.  About Stone Point Capital Stone Point Capital is a global private equity firm  based in Greenwich, Conn. Stone Point serves as the manager of the Trident  Funds, which have raised more than $10 billion in committed capital to make  investments in the insurance, employee benefits and financial services  industries. Stone Point has a 25-year record of making successful investments  in the financial services industry, including in the insurance services  sector. For further information about Stone Point, see www.stonepoint.com.    SOURCE  Sedgwick Claims Management Services, Inc.  (Sedgwick) Catherine Bennett, public relations director, 615-892-9361,  catherine.bennett@sedgwick.com; (KKR) Kristi Huller, director of  communications, Americas, 212-230-9722,kristi.huller@kkr.com; (Hellman &  Friedman) Mary Beth Grover, The Abernathy MacGregor Group, 212-371-5999,  mbg@abmac.com; (Stone Point Capital) Emanuel Citron, principal, investor  relations, 203-862-2974, ecitron@stonepoint.com  https://www.sedgwick.com  http://photos.prnewswire.com/prnh/20140127/CL52861LOGO  http://photos.prnewswire.com/prnh/20120813/CL56657LOGO  AP PhotoExpress Network:  ADD PRN#  PRN Photo Desk, photodesk@prnewswire.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/January2014/27/c5281.html  CO: Sedgwick Claims Management Services, Inc. ST: Tennessee NI: FIN HEA MNA