White Mountains Insurance Group Sells Controlling Interest in Bamboo

By Hao Liu • Saturday, October 04 10:26 • Permanent Link

White Mountains Insurance Group, Ltd. (NYSE: WTM) has announced the sale of a controlling interest in Bamboo, a data-enabled insurance distribution platform, to funds advised by CVC Capital Partners. The transaction values Bamboo at $1.75 billion and is expected to result in a gain of approximately $310 to White Mountains' book value per share and net cash proceeds of about $840 million.

White Mountains will retain an approximately 15% fully-diluted equity stake in Bamboo post-closing, valued at $250 million based on the transaction. The company expressed its gratitude for the partnership with Bamboo and its management team, highlighting the rapid growth and success of Bamboo during their ownership.

Following the transaction, Evercore Group L.L.C. served as the lead financial advisor, with Piper Sandler & Co. acting as the financial advisor, and Cravath, Swaine & Moore LLP serving as legal counsel to White Mountains and Bamboo. Willkie Farr & Gallagher acted as legal advisor to Bamboo management, and Latham & Watkins LLP acted as legal advisor to CVC.

Bamboo, a capital-light, tech* and data-enabled insurance distribution platform, primarily operates through its full-service managing general agent (MGA) business in California and Texas. The platform also includes a retail agency offering ancillary products on behalf of third parties and a captive reinsurer participating in the underwriting risk of Bamboo's MGA programs.

White Mountains expects the transaction to close by the end of the fourth quarter of 2025, subject to regulatory approvals and other customary closing conditions. The company will file a current report on Form 8-K with the U.S. Securities and Exchange Commission containing a summary of terms and conditions of the proposed transaction.

CVC, a leading global private markets manager, expressed confidence in Bamboo's mix of high growth, recurring revenue, and value to its partners and believes it is an optimal fit for its US portfolio.

This sale marks a significant milestone for both White Mountains and Bamboo and sets the stage for the next phase of growth for Bamboo as it welcomes CVC as its new majority capital partner alongside White Mountains. As a result of these announcements, the company's shares have moved 10.62% on the market, and are now trading at a price of $1841.34. If you want to know more, read the company's complete 8-K report here.

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