PE Deals

JAB to acquire Fairfax stakes in C&F Pet, Pethealth in $1.4bn deal

As part of the deal, Fairfax will make a $200 million investment in JCP V, JAB’s latest consumer fund.

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  • Fairfax will receive $1.4 billion in the form of $1.15 billion cash and $250 million in seller notes
  • The pet insurance industry has been expanding at a rate of approximately 20% per year on a global basis
  • JAB’s combined global pet insurance and ecosystem platform is estimated to have gross written premiums and pet health services revenues of over $1.2 billion by 2023

JAB Holding Company is acquiring Fairfax Financial Holding’s stakes in Akron, Ohio-based Crum & Forster Pet Insurance, and Oakville, Ontario-based Pethealth in a deal worth $1.4 billion. Fairfax will receive $1.15 billion cash and $250 million in seller notes. As part of the deal, Fairfax will make a $200 million investment in JAB’s latest consumer Fund, JCP V.

JAB was founded in 2012 and is headquartered in Luxembourg. It has over $50 billion in managed capital and invests across sectors including food services, beauty and luxury, and pet health and care.

The pet insurance industry has been expanding at a rate of approximately 20 percent per year globally and is expected to see continued steady growth. The deal means that JAB’s combined global pet insurance and ecosystem platform will be estimated to have gross written premiums and pet health services revenues of over $1.2 billion by 2023.

“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,” said Dirk Beeckman, CEO of JAB’s pet insurance portfolio.

Fairfax Financial Holdings is the Toronto-based private investment firm of Canadian billionaire, Prem Watsa. It was founded in 1985 and invests across insurance and reinsurance.

”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.” Commented Prem Watsa, the Founder, Chairman and CEO of Fairfax.