(Bloomberg) — JAB has agreed to acquire stakes in a pair of animal-insurance companies from Fairfax Financial Holdings Ltd., according to people familiar with the matter.

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JAB, which owns stakes in businesses like Keurig Dr Pepper Inc. and Krispy Kreme Inc., will pay about $1.4 billion for Fairfax’s holdings in Crum & Forster Pet Insurance Group and PetHealth Inc., said the people, who asked not to be identified as the details aren’t public. A deal could be announced as soon as Monday, the people said.

Fairfax, the Canadian investment firm run by Prem Watsa, plans to make an investment of $200 million in JAB’s latest consumer fund as part of the transaction, they said.

Representatives for Toronto-based Fairfax and JAB declined to comment.

Both C&F Pet and PetHealth offer insurance plans to animal owners, as well as provide services to animal-welfare shelters and adoption centers across various brands. JAB is already the controlling shareholder in Independence Pet Group, and has been growing the platform through acquisitions including Figo and Cardif Pinnacle. In November, the investment group hired four executives to lead its growing pet insurance business.

Businesses that help people care for their pets have seen a boom as pet ownership ballooned during the Covid pandemic. About 70% of US households owned a pet in 2021 and 2022, up from 67% in 2019, according to a survey conducted by the American Pet Products Association.

Buyers and sellers are taking advantage of what’s seen as a recession-proof investment. Champion Petfoods is exploring options including a potential sale that could value the company at more than $2 billion, Bloomberg News reported last week.

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