Fairfax to sell pet business to JAB in $1.4 billion deal
JAB Holding Company and Fairfax Financial Holdings announced a “transformational strategic partnership,” in which JAB’s pet insurance business has agreed to acquire all of Fairfax’s interests in the Crum & Forster Pet Insurance Group and Pethealth Inc., including all of their worldwide operations. As part of the transaction, Fairfax will also make a $200 million investment in JCP V, JAB’s latest consumer fund.
As a result of the transaction, in which Fairfax will receive $1.4 billion in the form of $1.15 billion cash and $250 million in seller notes, JAB’s combined global pet insurance and ecosystem platform will be estimated to have gross written premiums and pet health services revenues of well over $1.2 billion by 2023, insuring more than 2.1 million pets.
C&F Pet insures over 500,000 pets and markets or serves as underwriter for numerous brands, including ASPCA Pet Health Insurance, 24Petprotect, Hartville Pet Insurance, Spot Insurance Services, Pumpkin Insurance Services and PetCoach, LLC (provider of Petco pet insurance plans) in the U.S. and Pets Plus Us in Canada. Pethealth provides wellbeing and safety solutions to shelters and pet parents under the 24Pet brand, which includes the 24Petwatch Registry with over 20 million registered pets.
“Fairfax is very happy to partner with Olivier Goudet and JAB Holding Company. JAB has had an outstanding track record over the past 10 years and we expect this to continue. While we have sold our pet insurance business to JAB, we will invest $200 million in their JCP V to become their partners. We expect JAB to soon become leaders in pet healthcare and pet insurance globally. We wish them much success.” – Prem Watsa, the founder, chairman and CEO of Fairfax.
“Today’s transaction is a major milestone for us in our mission to become a global leader in pet insurance and the pet health ecosystem. It also significantly advances our mission of providing the leading health and wellbeing ecosystem for pets through the offering of affordable, comprehensive pet products and brands throughout a pet’s lifecycle. C&F Pet‘s long history of disciplined omni-channel underwriting fits perfectly with our culture, and we look forward to working with the team.” – Dirk Beeckman, CEO of JAB’s pet insurance portfolio.
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