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 for $1.75 billion. As a result of this transaction, White Mountains expects to gain approximately $310 in book value per share and net cash proceeds of about $840 million. The company will retain an approximately 15% fully-diluted equity stake in Bamboo post-closing, valued at $250 million based on the transaction.
The transaction is anticipated to close by the end of the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions. Evercore Group L.L.C. acted as the lead financial advisor, while Piper Sandler & Co. served as a financial advisor, and Cravath, Swaine & Moore LLP and Willkie Farr & Gallagher acted as legal counsels to White Mountains and Bamboo, respectively. Latham & Watkins LLP acted as legal advisor to CVC.
Bamboo, the asset being sold, is a tech* and data-enabled insurance distribution platform that primarily operates through its full-service managing general agent (MGA) business in the residential property market in California and Texas. It also operates a retail agency and a captive reinsurer. The transaction reflects the success of Bamboo during White Mountains' ownership and represents a significant milestone for both companies.
This story shows a significant financial move for White Mountains, with the sale of Bamboo representing a substantial gain in book value per share and net cash proceeds. The company's decision to retain a 15% equity stake in Bamboo post-closing also indicates its continued interest in the growth and success of the asset. Following these announcements, the company's shares moved 10.62%, and are now trading at a price of $1841.34. For more information, read the company's full 8-K submission here.
