White Mountains Sells Majority Stake in Bamboo for $1.75B
White Mountains, a leading financial services holding company, has announced the sale of a significant portion of its stake in Bamboo, a data-driven insurance distribution platform. The deal, valued at $1.75 billion, is set to close by the end of 2025, subject to regulatory approvals.
White Mountains' President and CFO, Liam Caffrey, described the transaction as a 'win-win' for shareholders and Bamboo's management and employees. The company expects to generate approximately $310 per share and net cash proceeds of $840 million from the sale. White Mountains will retain a 15% fully-diluted equity stake in Bamboo post-closing, worth an estimated $250 million.
The sale is to funds advised by CVC, with Daniel Brand, Partner at CVC, describing Bamboo as a 'one of a kind asset' in the homeowners' insurance market. White Mountains' CEO, Manning Rountree, praised Bamboo's rapid growth and innovation in the market. Chris Delehanty, Head of M&A at White Mountains, highlighted the company's approach to partnering with management teams and supporting their growth. John Chu, CEO of Bamboo, thanked the White Mountains team for their guidance and support, and expressed excitement for Bamboo's next phase of growth with CVC.
The sale of a majority stake in Bamboo to CVC is expected to close by the end of 2025, with White Mountains retaining a 15% stake. Both parties expressed satisfaction with the deal, with White Mountains generating significant proceeds and CVC acquiring a valuable asset in the homeowners' insurance market.
