Onex to sell The Warranty Group to TPG Capital
March 21 (Reuters) - 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 Management LP 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.
Onex bought The Warranty Group from insurance broker Aon in 2006 for $710 million. Onex put $498 million of equity into the deal, which also included substantial investment by The Warranty Group's management. (Reporting by Sayantani Ghosh in Bangalore)