Fairfax Announces Sale of RiverStone Europe to CVC
December 02 2020 - 6:58AM
Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U)
announces that it has entered into a binding agreement with CVC
Capital Partners (“CVC”) to sell all of its interests in RiverStone
Europe to CVC Strategic Opportunities Fund II. OMERS, the pension
plan for Ontario’s municipal employees, has also agreed to sell all
of its interests in RiverStone Europe as part of the transaction.
The purchase price to be received by Fairfax on
closing of the transaction is approximately US$750
million. Fairfax will also be entitled to receive up to
US$235.7 million post-closing under a contingent value instrument.
Luke Tanzer will remain the Managing Director of RiverStone Europe
and Nick Bentley, the Chief Executive Officer of the RiverStone
Group, will remain on the board of RiverStone Europe
post-closing.
After closing, RiverStone Europe will also
operate under the name RiverStone International and will seek to
continue its successful track record of acquisitions and growth led
by its existing management team.
“We are very pleased to enter into this
transaction with CVC,” said Prem Watsa, Chairman and Chief
Executive Officer of Fairfax. “RiverStone Europe is an industry
leader in run-off insurance services, and CVC’s scale and vision
will give RiverStone Europe, under the continued leadership of Luke
and his management team, the opportunity to further grow the
business. Nick and Luke are also fully supportive of this
transaction, based on their strong beliefs that it was the best way
for RiverStone Europe to continue to grow and pursue run-off
transactions. We wish Luke and all of the employees at RiverStone
Europe much success in the future. Fairfax remains
committed to continuing to grow its other European businesses,
including its Lloyd’s of London activities.”
“I am extremely happy to partner with CVC in
this next chapter of our development,” said Luke Tanzer, Managing
Director of RiverStone Europe. “This transaction will provide us
with a runway for further growth as we continue to offer the most
trusted and effective run-off solutions in the insurance market. We
look forward to joining the CVC family and benefitting from their
deep experience of financial services, global network and long term
pool of capital.”
“As one of the largest global consolidators of
non-life run-off insurance books, with a leading position in the UK
and Lloyd’s market, embedded cash flows and a predictable financial
profile, RiverStone Europe is ideally suited to CVC’s Strategic
Opportunities platform, which specializes in backing established
businesses in stable markets that have long term growth ambitions,”
said Peter Rutland, Managing Partner and Head of Financial Services
at CVC. “We have got to know RiverStone and Fairfax over many
years, and are delighted to now have the opportunity to work with
Luke Tanzer and his experienced team.”
The transaction is subject to customary closing
conditions, including various regulatory approvals, and is expected
to close in early 2021.
Fairfax is a holding company which, through its
subsidiaries, is engaged in property and casualty insurance and
reinsurance and the associated investment management.
CVC is making this acquisition through Strategic Opportunities
Fund II, a vehicle designed to invest in high-quality businesses
that are suited to longer hold investment horizons.
For further information contact: |
Fairfax: John Varnell, Vice President, Corporate Development at
(416) 367-4941 |
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CVC: Carsten Huwendiek, Global Head, Marketing & Communications
at +44 207 420 4200 |
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