Petplan, a leading pet health insurance provider in North America, today announced that the company has been acquired by Warburg Pincus, a global private equity firm focused on growth investing. The acquisition will provide Petplan with access to significant capital and resources to drive meaningful growth. Financial terms of the transaction were not disclosed.
Petplan, headquartered in Newtown Square, Pennsylvania, provides pet health insurance to over 200,000 customers in the U.S. and Canada. Under the leadership of CEO, Paul Guyardo, Petplan has experienced substantial growth, including the recent milestone of reaching 200,000 active subscribers. In the past year, total Petplan subscriptions have grown by nearly 15 percent – the fastest and most significant growth since 2015.
“This investment is a game changer for Petplan. It enables us to catapult the product innovation and customer experience that our company was founded upon and introduce the very best pet health insurance to millions of pet parents in North America,” said Paul Guyardo, CEO, Petplan. “We’re thrilled to be working with Warburg Pincus and the multitude of resources the firm provides.”
“As a long-term investor in the insurance sector, we see incredible potential in Petplan given its leading position in an underpenetrated and growing market,” said Jeff Stein, Managing Director, Warburg Pincus. “We are excited to partner with Paul and his management team to help drive the Company’s next phase of growth.”
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
As part of the acquisition, John Giannuzzi will join as Chairman of the Board for Petplan. Mr. Giannuzzi is the Co-Founder and Managing General Partner of Sherbrooke Capital, a growth capital private equity firm focused on investing in emerging consumer companies.
According to the American Pet Products Association, Americans will spend more than $18 billion on vet care this year alone1. Rising healthcare costs, combined with an increased awareness of pet insurance, has created significant market potential. With sixty-seven percent of U.S. households owning a pet2, only 2% of these pets are insured3, compared to the 25%-30% pet insurance levels found across Europe4. Pet insurance can save pet owners up to 90% on trips to the vet’s office for unexpected accidents, injuries and illnesses.
Warburg Pincus has invested over $13 billion across the full spectrum of the financial services landscape, including insurance, banking, asset management, specialty finance, payments, and transaction processing. Investments in insurance include, Foundation Risk Partners, SCM Insurance, McGill & Partners, Arch Capital, RenaissanceRe, and Aeolus Re.
Cozen O’Connor served as the legal advisor to Petplan and Wachtell, Lipton, Rosen & Katz served as the legal advisor to Warburg Pincus.
1 Pet Industry Market Size & Ownership Statistics, American Pet Products Association
2 American Pet Products Association (APPA) National Pet Owners Survey (2019-2020)
3 North American Pet Health Insurance Association (NAPHIA)
4 Canadian Animal Health Institute, Market Research Group
Date: October 07, 2019
Source: PR Newswire
