Sedgwick acquires TPA York Risk ServicesPosted On: Jul. 8, 2019 9:30 AM CST
Sedgwick Claims Management Services Inc. has agreed to acquire fellow top 10 third-party administrator York Risk Services Group Inc. in a transaction expected to close later this year.
Sedgwick will comprise nearly 27,000 staff following the close of the transaction – the terms of which were not disclosed, according to a statement on Monday. York has nearly 5,000 employees in more than 60 offices in the United States and an international presence as well.
“York offers customized claims solutions and has specialized experience to handle even the most complex claims across all liability lines,” Dave North, Sedgwick president and CEO, said in a client bulletin on Monday. “Their offerings notably complement Sedgwick’s existing market capabilities.”’
BofA Merrill Lynch and Morgan Stanley Senior Funding Inc. have provided committed debt financing for the transaction, which is subject to customary conditions and regulatory approvals.
Toronto-based private equity firm Onex Corp. acquired York in 2014 for $1.325 billion.
Sedgwick is the largest TPA with $2.7 billion in gross revenues in 2018 while York is the fifth largest with $800 million in revenues last year, according to the latest Business Insurance rankings.
About 52% of claims handled by York are workers compensation claims, 27% are auto and 10% general liability, according to Business Insurance's 2019 Third-Party Administrators Rankings and Directory.
“Our top priority will always be ensuring that clients’ programs continue to produce outstanding results,” Mr. North said. “Our dedicated colleague teams and trusted technology remain in place to provide those we serve with the exceptional support they expect from Sedgwick. Until the close of the transaction, York will continue conducting business as usual too.”
Sedgwick has made numerous acquisitions over its 50-year history, including Singapore-based loss adjuster Insight Adjusters and Surveyors Pte Ltd. to expand its operations in the region in March.