Insurance and benefits claims firm Sedgwick said it has completed its purchase of York Risk Services Group, which offers claims administration, managed care and loss adjusting services.
The acquisition plan was first announced in July. The purchase marks Sedgwick’s third acquisition of a TPA in five years. The Memphis, Tennessee-based company purchased Cunningham Lindsey in 2018 and T&H Global Holdings, owner of VeriClaim, in 2014.
As part of the transaction, entities controlled by Onex Corp., an investment manager that owned York, are rolling their equity into the combined business and joining Sedgwick’s shareholder group as a minority investor. Sedgwick’s majority shareholder is The Carlyle Group, while Stone Point Capital, Caisse de dépôt et placement du Québec, and management investors are the other minority shareholders.
Sedgwick Group President Michael Arbour told Claims Journal that the purchase of York will enhance the company’s scope of services and improve its access to talent in the claims industry. He said York is active in some market segments where Sedgwick has little presence, such as with Longshore and Harbor Workers’ Compensation and Defense Base Act claims and the administration of group risk pools. He also said York also is in a strong position as a service provider for public agencies and provides managed care services for other claims administrators. Sedgwick also provides managed care services, but only to clients for whom it adjusts claims, he said.
York, based in Jersey City, New Jersey, has about 5,000 employees in about 60 U.S. offices. With the close of the acquisition, the Sedgwick business now comprises nearly 27,000 employees across 65 countries.
“The York acquisition marks another milestone in our storied half-century of growth,” said Sedgwick president and CEO Dave North, referencing the company’s 50th anniversary in 2019.
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