KKR’s close relationship with private-equity firm Stone Point Capital might have helped when buying insurance outsourcing firm Sedgwick Claims Management Services.
Henry Kravis’ shop announced Monday it was paying approximately $2.4 billion to buy Sedgwick from private-equity firms Hellman & Friedman and Stone Point.
KKR is paying about 12 times EBITDA, matching initial sale expectations.
In 2012, KKR and Sedgwick co-owner Stone Point formed a partnership, KKR-SPC Merchant Advisors, to provide capital markets services to mid-market companies.
That relationship may have given KKR an edge in the closely controlled auction, a source close to Sedgwick said.
KKR and Stone Point each committed $150 million of equity to support its capital markets activities and client base.
Sedgwick sellers Hellman & Friedman and Stone Point did not return calls.