JAB’s Acquisition of Fairfax’s Interests in C&F Pet and Pethealth

Skadden advised JAB Holding Company on the deal.

JAB Holding Company (“JAB”) announced that its pet insurance business has agreed to acquire all of Fairfax Financial Holdings Limited’s (“Fairfax”) interest the Crum & Forster Pet Insurance Group™ (“C&F Pet”) and Pethealth Inc., including all of their worldwide operations.

As a result of the transaction, in which Fairfax will receive $1.4 billion in the form of $1.15 billion cash and $250 million in seller notes, JAB’s combined global pet insurance and ecosystem platform will be estimated to have gross written premiums and pet health services revenues of well over $1.2 billion by 2023, insuring more than 2.1 million pets. The transaction is expected to close in the second half of 2022. 

JAB Holding Company invests in consumer-focused industries with attractive long-term dynamics, including strong growth prospects, attractive margin and cash flow characteristics, and proven resiliency. 

Fairfax Financial Holdings Limited is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.

For over 20 years, Crum & Forster Pet Insurance Group™ has been committed to helping people get access to reliable and affordable pet insurance plans. From routine exams to unexpected illnesses, its plans are available to pet parents of cats and dogs.

Independence Pet Group is an integrated, full-stack pet insurance platform indirectly majority owned by JAB Holding Company. It offers a comprehensive range of underwriting options, turnkey partner solutions, and consumer-facing insurance products through its wholly own subsidiary, Independence American Insurance Company, a leading provider of underwriting services to the pet insurance sector with licenses in all 50 states. 

The Skadden team included M&A partners Jon Hlafter (Picture), Sean Doyle, counsel Liana-Marie Lien, and associates Daniel Luks, William Leonard, Seira Shin-Clayton, Reba Orloff and Jackson Mann; Executive Compensation and Benefits partner Erica Schohn and counsel Laura Westfall; Intellectual Property and Technology partner Bruce Goldner; and Labor and Employment partner David Schwartz. 

Involved fees earner: Sean Doyle – Skadden; Bruce Goldner – Skadden; Jon Hlafter – Skadden; William Leonard – Skadden; Liana-Marie Lien – Skadden; Daniel Luks – Skadden; Jackson Mann – Skadden; Reba Orloff – Skadden; Erica Schohn – Skadden; David Schwartz – Skadden; Seira Shin-Clayton – Skadden; Laura Westfall – Skadden;

Law Firms: Skadden;

Clients: JAB Holdings;