JAB Targets Pet Insurance M&A With Purchase of BNP Paribas Unit

JAB is acquiring two large pet insurers in the U.K. and Chicago as the investment firm seeks to become a dominant player in the fast-growing animal health insurance industry.

The company said it has taken a majority stake in Cardif Pinnacle, a pet insurance-focused subsidiary of BNP Paribas SA, and is buying Chicago-based Figo Pet Insurance LLC, beginning a series of investments in the sector. The prices weren’t disclosed.

JAB, which has previously consolidated coffee and cosmetics into industry giants, has already built up a pet care division, running 1,400 veterinary hospitals and clinics in countries such as the U.S. and Australia through companies including Compassion-First Pet Hospitals and National Veterinary Associates. Now it’s specifically targeting the field of pet insurance, where it also aims to become a global player.

The firm tried to hide its tracks as it entered the field. When JAB acquired Independence Holding Company’s pet insurance arm earlier this year, it made the purchase through a vehicle named Iguana Capital to conceal its identity. It used the same approach in the coffee industry, when it bought assets including Keurig and Jacobs Douwe Egberts through decoy entities to try to keep its strategy private, David Bell, a senior partner at JAB, said in an interview.