Luxembourg-based CVC Capital Partners–led group has agreed to purchase insurance-claims adjuster Cunningham Lindsey from Stone Point Capital and Fairfax Financial Holdings in a deal valued between $900m and $1bn including debt.
An unidentified source close to the matter further revealed that Fairfax will be selling its stake for $260m, while the owners of the insurance claims management company had plans to remain as investors.
Cunningham chief executive officer Philippe Bes said, "CVC’s diversified international coverage will be a tremendous asset to capitalize on as we broaden our global Presence supporting the unique capabilities and expertise that our clients need."
The former European private-equity arm of Citigroup said Bes will continue to manage the company and join its board of directors.
Cunningham Lindsey’s predecessor was bought by the Toronto-based insurer Fairfax in 1986 and by the end of 2007, it sold 51% of its stake to Greenwich-based Stone Point, as reported by Bloomberg.
As of 30 June 2012, Fairfax had a 43% stake in Cunningham.
The Florida-based insurance firm, which manages 7,000 employees, operates in 61 countries including Australia, Brazil, Germany, India, Japan and the US, offering claims adjusting, appraisal and claims and risk management for property and casualty insurance losses.
Cunningham received advice on the deal from Bank of America and Debevoise & Plimpton, whereas CVC’s investor group was assisted by Willis Capital Markets Advisory Weil, Gotshal & Manges LLP and Clifford Chance.
CVC also received fully committed financing from Bank of America, Morgan Stanley, Royal Bank of Canada and UBS.
The transaction is subject to certain customary closing conditions, including regulatory approvals.