Wednesday, September 12, 2018

Greedy Carlyle to Buy Compassionate Sedgwick


The Carlyle Group will buy Sedgwick for $6.7 billion from fellow private equity underwriter KKR,  KKR bought Sedgwick for $2.4 billion in 2014.  The deal will close later this year.  Sedgwick's website lists the following claims management services:

workers’ compensation, liability, property, disability and absence management
KKR referred to Sedgwick's "delivering high quality technology-driven insurance solutions to clients and consumers around the globe."  I'm pretty sure high quality technology-driven claims management service is not compassionate, especially under the ownership of Carlyle.

Update 9-16-18:  Moody's indicated in December 2017 Sedgwick was highly levered, almost 8x debt to EBITDA, under KKR.  Carlyle has hundreds of companies that can send new business to Sedgwick.