10:26 AM EDT, 10/03/2025 (MT Newswires) -- White Mountains Insurance ( WTM ) on Friday agreed to sell a controlling stake in Bamboo to funds advised by CVC Capital Partners in a deal that values the insurance distribution platform at $1.75 billion.

Bamboo provides homeowners' insurance to the residential property market in California and Texas. Shares of White Mountains jumped 11% in Friday trade.

"This transaction is a win-win for both White Mountains shareholders and Bamboo management and employees," White Mountains Chief Executive Manning Rountree said in a statement.

White Mountains expects cash proceeds of about $840 million from the transaction and a gain of roughly $310 to its book value on a per-share basis, it said. The insurance and financial services firm will retain an equity interest of about 15% in Bamboo, valued at $250 million.

The deal, which requires approval from regulators, is expected to complete in the fourth quarter.

"We believe Bamboo's mix of high growth, recurring revenue and value to its partners make it an optimal fit for CVC's US portfolio," CVC US Managing Partner Lorne Somerville said in the statement.

In 2023, White Mountains agreed to indirectly acquire a stake of about 70% in Bamboo Ide8 Insurance Services for about $285 million in cash, according to a regulatory filing.

Last month, the company announced that Rountree will retire at the end of the year, with Chief Financial Officer Liam Caffrey set to succeed him as CEO, effective Jan. 1.

Price: 1829.60, Change: +165.04, Percent Change: +9.91