White Mountains Sells Majority Stake in Bamboo to CVC for $1.75 Billion
White Mountains is set to sell a majority stake in its subsidiary, Bamboo, to funds advised by CVC. The deal, valued at $1.75 billion, will see White Mountains retain a 15% stake worth approximately $250 million. The new majority shareholder will be EBRD, holding 85% of the shares.
The transaction, expected to close by the end of 2025, is hailed as a 'win-win' by Liam Caffrey, President and CFO of White Mountains. It is anticipated to generate around $310 per share and net cash proceeds of $840 million for White Mountains. Chris Delehanty, Head of M&A, highlighted White Mountains' approach to collaborating with management teams for successful outcomes.
Daniel Brand, Partner at CVC, praised Bamboo as a unique asset deploying distinctive technology and underwriting. John Chu, CEO of Bamboo, thanked the White Mountains team for their support. Manning Rountree, CEO of White Mountains, commended Bamboo's rapid growth and innovation in the homeowners' insurance market.
Upon closing, EBRD will become the majority shareholder of Bamboo, with White Mountains retaining a significant minority stake. The deal reflects Bamboo's value and potential, with both parties expressing satisfaction with the outcome.
