White Mountains Sells Bamboo Stake to CVC in $1.75B Deal
The sale of the controlling interest in the insurance platform represents a significant and rapid return on investment for White Mountains.
White Mountains Insurance Group (NYSE: WTM) has entered into a definitive agreement to sell its controlling interest in the tech-enabled insurance platform Bamboo to private equity firm CVC Capital Partners. The transaction values Bamboo at a striking $1.75 billion, marking a highly profitable exit for White Mountains from its recent investment.
The deal is structured to provide White Mountains with approximately $840 million in net cash proceeds. The company announced the sale will result in a , a significant boost for shareholders. Following the transaction's close, White Mountains will retain a 15% fully-diluted equity stake in Bamboo, valued at approximately $250 million, allowing it to participate in the company's future growth.
This sale represents a remarkably swift and successful turnaround for White Mountains, which . That initial deal saw the company invest roughly $285 million for a 70% stake, highlighting the substantial value created in a short period.
Bamboo has established itself as a key player in the homeowners' insurance market, with a strong focus on data-driven underwriting and distribution, primarily in California and Texas. The acquisition by CVC is expected to fuel Bamboo's next phase of expansion, leveraging the private equity firm's extensive resources and global network.
The transaction has been approved by the boards of both companies and is anticipated to be finalized by the end of the fourth quarter of 2025, pending customary regulatory approvals. to White Mountains on the deal, with Cravath, Swaine & Moore LLP providing legal counsel. This strategic divestment crystalizes a significant gain for White Mountains and positions Bamboo for continued growth under new ownership.