Reports: KKR Nears Deal To Buy Sedgwick Claims For More Than $2 Bln

(RTTNews) - Private equity giant Kohlberg Kravis Roberts & Co. L.P. (KKR) is close to buying insurance claims services provider Sedgwick Claims Management Services Inc. for more than $2 billion, according to media reports on Friday. A deal could be announced as soon as next week.

In 2010, buyout firms Stone Point Capital LLC and Hellman & Friedman LLC acquired Sedgwick from Fidelity National Financial Inc. (FNF) as well as private equity firms Thomas Lee Partners L.P. and Evercore Capital Partners for about $1.1 billion. Prior to that, the business was owned by insurance brokerage and risk-management company Marsh & McLennan Companies Inc. (MMC).

Sedgwick 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.

If completed, the Sedgwick deal will be KKR's second acquisition of a claims service provider in a span of four months. In September 2013, KKR agreed to buy privately-held automotive claims services provider Mitchell International Inc. from private equity form Aurora Capital Group in a deal reportedly valued at more than $1.0 billion.

KKR closed Friday's trading at $24.56, down $1.21 or 4.70 percent on a volume of 3.68 million shares.