TPG agrees to buy The Warranty Group from Onex Corporation in $1.5 bln deal

TPG has agreed to acquire The Warranty Group, which provides warranty solutions and related programs, from Onex Corporation for an enterprise value of about $1.5 billion. The deal is expected to close in the third quarter of 2014.

Press Release

TPG, a leading global private investment firm, announced today that it has signed a definitive agreement to acquire The Warranty Group, Inc., a leading global provider of warranty solutions and related programs, from Onex Corporation (TSX: OCX), for an enterprise value of approximately $1.5 billion.
Under the terms of the agreement, TPG will acquire The Warranty Group and its operating units including Virginia Surety Company, London General Insurance Company, and Resource Automotive. The transaction is expected to close in the third quarter of 2014, and is subject to customary closing conditions and regulatory approvals.

“We are excited to partner with TPG, which will provide our company with the global resources and deep financial industry expertise needed to expand both internationally and domestically,” said Thomas W. Warsop, III, President and Chief Executive Officer of The Warranty Group. “We look forward to working with the TPG team to identify additional growth opportunities, while providing our clients and their customers with an even more robust menu of solutions.”

“As the worldwide leader in full service underwriting and administration of extended warranties, and with its unique business model, The Warranty Group is well positioned to take advantage of current and future market trends,” said Eric Leathers, Managing Director at TPG. “Tom and his team have done a great job building the business, and we believe with our additional capital, operational expertise and global relationships, we can accelerate the company’s growth.”

J.P. Morgan Securities LLC served as the sole M&A advisor, and Skadden, Arps, Slate, Meagher & Flom LLP served as outside counsel for TPG. Goldman Sachs & Co., Morgan Stanley & Co. LLC, and Citigroup Global Markets Inc. acted as financial advisors, and Kaye Scholer LLP served as outside counsel for The Warranty Group and Onex.

About The Warranty Group
Celebrating 50 years of industry leadership, The Warranty Group is one of the world’s premier global providers of warranty solutions and related benefits, with operations in more than 35 countries and approximately 1,800 employees. With Virginia Surety Company and London General Insurance as our wholly-owned insurance companies, The Warranty Group is a single-source solution that provides underwriting, claims administration, and marketing expertise to some of the world’s leading manufacturers, distributors, and retailers of consumer goods including automobiles, homes, consumer appliances, electronics, and furniture, as well as specialty insurance products and services for financial institutions. For more information, visit www.thewarrantygroup.com.

About TPG
TPG is a leading global private investment firm founded in 1992 with over $59 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Beijing, Chongqing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, São Paulo, Shanghai, Singapore and Tokyo. The firm has extensive experience with public and private investments around the world. TPG has deep financial services expertise across the globe, having made investments in companies such as American Beacon Advisors, Ariel Reinsurance, Decision Insight Information Group, Endurance, Fidelity National Information Services (FIS), LPL Financial Services, ProSight Specialty Insurance, Shenzhen Development Bank and Shriram Transport, among others. For more information visit www.tpg.com.

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