Canada's Fairfax Financial said to sell its pet insurance business to JAB for $1.4B

Maksim Labkouski

• Canadian property and casualty insurer Fairfax Financial (OTCPK:FRFHF) said towards the end of June that it will sell its pet insurance business to Germany's JAB in a deal valued at $1.4B.
• Specifically, JAB will acquire Fairfax's (OTCPK:FRFHF) holdings in Crum & Forster Pet Insurance Group and PetHealth, including all of their global operations, according to a release dated June 20. The transaction will consist of $1.15B in cash and $150M in seller notes.
• As part of the deal, which is expected to close in the second half of 2022 Fairfax (OTCPK:FRFHF) is planning to invest $200M in JCP V, Jab's most recent consumer fund, the release said.
• Note that JAB, which invests in consumer-focused industries, is the largest shareholder of Keurig Dr Pepper and owns almost 45% of doughnut maker Krispy Kreme.
• In February, Fairfax Financial made a $300M investment in Kennedy-Wilson.