Onex to sell The Warranty Group to TPG Capital for $1.5 bln

warranty

Canadian private equity investment firm Onex Corp said it would sell The Warranty Group, a provider of extended warranty contracts, to an affiliate of TPG Capital for an enterprise value of about $1.5 billion.

The deal value includes earnings the business generates from Dec. 31, 2013 until the expected closing of the deal in the third quarter of the year, according to sister news service Reuters.

The firm bought The Warranty Group from insurance broker Aon Plc in 2006 for $710 million, of which Onex Corp and its affiliates contributed $498 million.

Onex Corp will get about $385 million of the proceeds, the company said in a statement on Friday.

The Warranty Group provides extended warranty contracts for an array of consumer goods, including automobiles, consumer electronics and major home appliances. It also provides credit insurance and other specialty insurance products.

The 50-year old Chicago-based company has more than 1,900 employees and operations in 32 countries, according to its website.

Reuters reported in September that Onex had hired banks including Morgan Stanley to find a buyer for The Warranty Group.

Sayantani Ghosh is an editor-in-charge for Reuters news service in Bangalore.

Artwork by Shutterstock

Related Posts

Leave a Reply

PEHUB Community

Join the 12501 members of peHUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Look Who’s Tweeting

Psst! Got any hot tips?

  • This field is for validation purposes and should be left unchanged.

PE HUB News Briefs

RSS Feed Widget

Marketplace

VCJ Headlines (subscribers only)

RSS Feed Widget

Buyouts Headlines (subscribers only)

RSS Feed Widget

Reuters VC and PE feed

RSS Feed Widget