Business

Fairfax completes £510m sale of RiverStone Europe to CVC

Fairfax will also be entitled to receive up to $235.7m (£171.8m) post-closing under a ‘contingent value instrument’

Fairfax Financial Holdings has announced that it has completed the sale of all of its interests in RiverStone Europe to CVC Capital Partners (CVC) for a purchase price of approximately $700m (£510m).

Fairfax will also be entitled to receive up to $235.7m (£171.8m) post-closing under a “contingent value instrument”.

The sale, which was first announced in December 2020, sees Luke Tanzer the managing director of RiverStone Europe and Nick Bentley, the CEO of the RiverStone Group, remain on the board of RiverStone Europe post-closing.

Under the new ownership, RiverStone Europe will now operate under the name RiverStone International.

Prem Watsa, chairman and CEO of Fairfax, said at the time: “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.

“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.”

Peter Rutland, managing partner and head of financial services at CVC, added: “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.”

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