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Fairfax Financial Holdings will sell its global pet insurance operations to JAB Holding, the private investment company of Germany’s Reimann family, in a $1.4 billion deal, the companies said on Monday.

Fairfax, the Canadian investment company headed by well-known contrarian investor Prem Watsa, will sell its interests in Crum & Forster Pet Insurance Group and Pethealth Inc., including all of their worldwide operations to JAB’s pet insurance unit for US$1.15-billion in cash and US$250-million in seller notes.

As part of the deal, Fairfax will also make a US$200-million investment in JCP V, JAB’s latest consumer fund, which will include pet insurance as a core part of its portfolio.

JAB, which aims to bolster its pet insurance portfolio with the deal, is known for its investments in doughnut maker Krispy Kreme, in which its owns nearly 45 per cent.

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