Fidelity National Sells Stake in Sedgwick Claims Management
Fidelity National Financial, Inc. has agreed to sell its 32 percent equity ownership stake in Sedgwick Claims Management Services, Inc. to affiliates of Stone Point Capital LLC and Hellman & Friedman LLC.
Stone Point was a 40 percent owner when FNF, Thomas H. Lee Partners, L.P. and Evercore Capital Partners acquired Sedgwick in January 2006.
Sedgwick is a leading provider of claims management services to corporate and institutional clients.
Under the terms of the definitive agreement, the total cash purchase price for Sedgwick, including repayment of debt, will be approximately $1.1 billion. FNF expects to receive net proceeds of approximately $220 million for its 32 percent equity ownership stake, resulting in a pre-tax gain of approximately $95 million.
The transaction is expected to close during the second quarter of 2010, subject to customary closing conditions and the receipt of any necessary regulatory approvals.
“The sale of Sedgwick clearly achieves our on-going goal of creating significant value for our shareholders and is the culmination of a very successful four-year investment for FNF,” said Chairman William P. Foley, II.
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