(Image source: York Risk Services Group homepage.)
Sedgwick, a Memphis, Tenn.-based global provider of technology-enabled risk, benefits and integrated business solutions, has signed an agreement to acquire York Risk Services Group (Jersey City, N.J.). Sedgwick did not disclose the terms of the agreement.
York provides claims administration, managed care, specialized loss adjusting, pool administration and loss control solutions. The company serves a variety of clients, including corporations, the insurance industry and public entities. York has approximately 5,000 employees in more than 60 offices across the U.S., as well as an international presence.
York offers customized claims solutions and specialized experience in complex claims across all liability lines. Sedgwick characterizes York’s offerings as complementing its existing market offerings.
“Today’s news marks another exciting milestone in our storied 50-year history of growth,” comments Dave North, president and CEO, Sedgwick. “The strategic acquisition of York enhances Sedgwick’s status as a global industry leader.”
BofA Merrill Lynch and Morgan Stanley & Co. LLC served as financial advisors to Sedgwick, and Simpson Thacher & Bartlett LLP and Clifford Chance US LLP served as legal advisors, according to a Sedgwick statement. Jefferies LLC and J.P. Morgan Securities LLC served as financial advisors to York, and Fried, Frank, Harris, Shriver & Jacobson LLP served as its legal advisor. BofA Merrill Lynch and Morgan Stanley Senior Funding, Inc. provided committed debt financing for the transaction.
Consolidation is accelerating in the competitive and growing insurance TPA segment owing to historically high levels of available private equity capital, according to Stephen Applebaum, Managing Partner, Insurance Solutions Group. At a more tactical level, the acquisition is a continuation of Sedgwick’s strategy of broadening its claims services by segment, he adds.
“This brings Sedgwick closer than ever to being able to offer global and national customers a complete menu of risk management, loss prevention and remediation for claims of all types and across all lines of business, inside and beyond just the insurance segment,” Applebaum comments. “Carriers are demonstrating a preference for developing fewer deeper and broader strategic partnerships for risk and claims management as well as loss prevention and control across all lines of business, and this transactions brings Sedgwick even closer to becoming the primary choice.”
Serving More Customers in More Places
“Joining forces with Sedgwick will provide enhanced capabilities for York’s clients and new opportunities for our associates,” comments Thomas Warsop, chairman and CEO, York. “It’s great news for all.”
“At Sedgwick, taking care of people is at the heart of everything we do,” adds Sedgwick’s North. “Bringing together the expertise and capabilities of Sedgwick and York will allow us to serve more customers in more places and show an unprecedented number of people how caring counts.”