Fairfax and Cunningham Lindsey seal the deal with Stone Point

Fairfax Holdings Limited and Cunningham Lindsey Group Inc. have closed a transaction pursuant to an agreement with Trident IV, L. P., a private equity fund managed by Stone Point Capital LLC.

According to the agreement, Stone Point acquired a 51 per cent interest in a holding company that owns the operating businesses of Cunningham Lindsey for $88 million.

Fairfax invested roughly $35 million, in addition to investment by senior management at Cunningham Lindsey and its operating companies.

The proceeds were used to repay Cunningham Lindsey’s $72.8-million unsecured term loan facility and for working capital, according to a release issued jointly by Fairfax and Cunningham Lindsey.

A condition of the investment by Stone Point was that Fairfax be the sole shareholder of Cunningham Lindsey. In order to satisfy this, Fairfax acquired the entire outstanding subordinate voting shares of Cunningham Lindsey, which it had not owned previously. Fairfax now holds an approximately 45% interest in the operating companies of Cunningham Lindsey through its 100% ownership of the company.

Senior management of Cunningham Lindsey and its operating companies hold an approximately 4% interest in the operating companies. •