(Adds details from statement, background)
March 21 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
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 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
Reuters reported in September that Onex had hired banks
including Morgan Stanley to find a buyer for The Warranty Group.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Savio