ATLANTA and BEVERLY HILLS, Calif., Aug. 21 /PRNewswire-FirstCall/ --
Crawford & Company (NYSE: CRDA; CRDB) and Platinum Equity announced today
that they have entered into a definitive agreement under which Crawford
will acquire Platinum's portfolio company Broadspire Services, a leading
third- party administrator offering a comprehensive integrated platform of
casualty claim and medical management services.
Broadspire Services, a privately-held corporation, will be acquired by
Crawford for total consideration of $150 million and the acquisition is
anticipated to more than double Crawford's revenue from self-insured
clients. The transaction, which is subject to normal closing conditions, is
expected to be completed during the fourth quarter 2006.
"We are excited about this acquisition and believe that it not only
further strengthens our position in the marketplace, it also illustrates
that we are fully committed to serving our clients' and brokers' needs,"
said Tom Crawford, president and CEO of Crawford & Company. "Broadspire
Services' reputation, experience, and resources, coupled with our
revolutionary service model and wide array of specialized support services,
provide clients with a distinct advantage clearly focused on driving down
costs."
Jim Levitas, senior vice president for mergers and acquisitions at
Platinum Equity, said that Crawford & Company is an ideal strategic
acquirer to continue the growth and development of Broadspire Services,
which Platinum established as a stand-alone company after acquiring the
business in 2003 from Kemper Insurance Companies.
"We have invested a great deal in building Broadspire Services into one
of the industry's premier providers of integrated claims and medical
management services," Mr. Levitas said. "We are proud of the company's
strong capabilities and track record, and have a great deal of confidence
that Crawford will continue building on Broadspire Services success."
Dennis Replogle, president and CEO of Broadspire Services, said the
combination of Broadspire Services and Crawford & Company would enhance the
capabilities of each.
"This transaction is a huge win for both companies," Mr. Replogle said.
"In particular, clients will see greater value and performance as the best
components of both organizations are combined to provide a dynamic suite of
enhanced products and services."
The acquisition of Broadspire Services supports Crawford's mission of
becoming the leader and third-party administrator of choice in all segments
of the market for casualty claims program administration. Casualty claims
administration encompasses workers' compensation, and auto and general
liability exposures for the insured and self-insured marketplace. Based on
2005 revenue[1], the combined Crawford and Broadspire Services organization
will rank third in revenue from claims handled for this market segment.
Crawford & Company intends to retain the Broadspire Services name,
rebranding Crawford Integrated Services, its risk and healthcare management
business unit.
"Keeping the Broadspire Services name fits in with the Crawford &
Company strategy of providing an independent, clearly recognizable identity
for each business unit within the Company," said Bob Kulbick, president of
Crawford Integrated Services. "I am also delighted that Dennis Replogle has
agreed to be a part of the new company."
Advisors to Platinum Equity on this transaction include StoneRidge
Advisors, LLC, and Bingham McCutchen, LLP. SunTrust Robinson Humphrey and
King & Spalding, LLP were the advisors for Crawford & Company.
Crawford will have a conference call on the acquisition on Tuesday,
August 22, 2006 at 10:00 a.m. Eastern Time. This call can be accessed by
dialing 1- 877-481-7146 (domestic) or 706-679-2795 (International).
The call will be recorded and available for replay until August 29,
2006. To listen, you may dial 1-800-642-1687 (domestic) or 706-645-9291
(International) (conference ID # 4946663).
This call is being webcast by Thomson/CCBN and can be accessed at
Crawford & Company's Web site at http://www.crawfordandcompany.com.
The webcast is also being distributed through the Thomson StreetEvents
Network. Individual investors can listen to the call at
http://www.earnings.com, Thomson's individual investor portal, powered by
StreetEvents. Institutional investors can access the call via Thomson
StreetEvents (http://www.streetevents.com), a password-protected event
management site.
About Crawford & Company
Based in Atlanta, Georgia, Crawford & Company
(http://www.crawfordandcompany.com) is the world's largest independent
provider of claims management solutions to insurance companies and self-
insured entities, with a global network of more than 700 offices in 63
countries. Major service lines include property and casualty claims
management, integrated claims and medical management for workers'
compensation, legal settlement administration, including class action and
warranty inspections, and risk management information services. The
Company's shares are traded on the NYSE under the symbols CRDA and CRDB.
About Platinum Equity
Platinum Equity (http://www.platinumequity.com) is a global M&A&O(R)
firm specializing in the merger, acquisition and operation of companies
that provide services and solutions to customers in a broad range of
business markets, including information technology, telecommunications,
logistics, manufacturing, and entertainment distribution. Since its
founding in 1995 by Tom Gores, Platinum Equity has acquired more than 60
businesses with more than $13 billion in aggregate annual revenue.
About Broadspire Services
Broadspire (http://www.choosebroadspire.com), a Platinum Equity company
and third-party administrator, offers a broad array of customized casualty,
medical management and integrated disability management services designed
to increase employee productivity and contain costs. The services
Broadspire offers include workers' compensation, auto and general liability
claims management; medical and field care management, either integrated
with casualty services or available on an unbundled basis; integrated
workers' compensation and disability management programs. Broadspire is
based in Plantation, Florida, a suburb of Ft. Lauderdale, with 1,800
employees throughout the United States.
Except for historical information contained herein, the matters
discussed in this press release are forward-looking statements that involve
risks and uncertainties, including statements regarding our pending
acquisition of Broadspire Services and the timing of the closing, the
integration and the results of the acquisition. Crawford & Company faces
risks associated with the acquisition, including, but not limited to, risks
that the transaction may close more slowly than expected or not at all,
that the integration of Broadspire Services into the Company's operations
may not be successful or may be more expensive than anticipated and that
the anticipated results of the combined company following the acquisition
may not meet expectations. For a discussion of other factors which could
affect the Company's performance, see the Company's Form 10-K for the year
ended December 31, 2005 filed with the Securities and Exchange Commission,
in particular the information under the headings "Business," "Legal
Proceedings" and "Management's discussion and Analysis of financial
Condition and Results of Operations."
[1] Source: Business Insurance. March 20, 2006, page 16.
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