A. Lee Graham
TPG has acquired The Warranty Group Inc. from Onex Corp. in a $1.5 billion transaction that sees Fort Worth-based TPG gain the global provider of warranty solutions and related programs.
“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 CEO of The Warranty Group, commenting in a news release.
Under terms of the agreement, TPG will acquire The Warranty Group and its operating units, including Virginia Surety Co., London General Insurance Co. and Resource Automotive. The transaction is expected to close in third-quarter 2014, and is subject to customary closing conditions and regulatory approvals.
Serving as mergers-and-acquisitions adviser in the transaction was J.P. Morgan Securities LLC, with Skadden, Arps, Slate, Meagher & Flom LLP acting as outside counsel for TPG. Serving as financial advisers were Goldman Sachs & Co., Morgan Stanley & Co. LLC and Citigroup Global Markets Inc., with Kaye Scholer LLP serving as outside counsel for The Warranty Group and Onex.