Acquisition solidifies Assurant’s position as a global leader in vehicle protection market
Assurant, Inc, a premier global provider of risk management solutions, has announced the closing of its acquisition of The Warranty Group from TPG Capital for a total enterprise value of approximately USD 2.5 billion. This reflects approximately 10.4 million Assurant shares, or USD $993 million based on the acquisition agreement closing price, and approximately $1.5 billion in cash, after considering the repayment of The Warranty Group’s $596 million in existing debt. The transaction further cements Assurant’s leadership position in vehicle protection and supports the company’s growth strategy in the broader global lifestyle market with an attractive product and client portfolio and a deepened global footprint.
“We are excited to close our acquisition of The Warranty Group, which significantly advances our global lifestyle growth strategy of helping consumers protect their appliances, mobile devices and electronics, while solidifying our global position,” said Alan Colberg, Assurant President and Chief Executive Officer. “The combination of our two companies will support ongoing product and service innovation for our clients and consumers, while we expect to realise significant operating synergies and generate more diversified and predictable earnings over time.”
Jointly operating across 21 countries, the acquisition of The Warranty Group deepens Assurant’s global footprint and provides additional resources to accelerate the company’s mobile strategy in key markets such as Asia-Pacific. The Warranty Group’s U.S. vehicle protection business brings new client partnerships and distribution channels, including dealer networks and national accounts to Assurant.
The acquisition also amasses greater consumer insights, which will be used to capitalise on emerging trends in the auto market to better serve clients and consumers. With annualised revenue greater than $2 billion as of March 31, 2018, The Warranty Group expands Assurant’s size and scale within vehicle protection, extended service contracts and financial services. By the end of 2019, Assurant expects to generate $60 million of pre-tax operating synergies.
Assurant also announced the senior leadership teams of its Global Automotive business and its key regions.As part of this transaction, Peter McGoohan and Eric Leathers, both representatives of TPG Capital, will join Assurant, Inc.’s board of directors and will serve on the board’s Compensation and Finance & Risk committees, respectively.
For more information: www.assurant.com