Existing management retains a stake
Advent International has sold Domestic & General to CVC Capital Partners, another private equity firm, for £750m.
The existing management team, which took a stake in the company when it was bought by Advent in 2007, are to reinvest a “significant amount” of the proceeds of the sale into the business.
Terms of the deal were not disclosed and it is expected to receive regulatory approval by the end of the year.
Domestic & General chief executive John Pearmund said: “We are delighted to have CVC as a partner as we enter the next phase of our company’s growth. We very much welcome the support, opportunities and resources that CVC will bring to D&G to enable us to build further on our success to date in the UK and internationally.”
The home appliance insurer increased warranty sales by 10% to £570m in the year to 31 March 2012, while EBITDA grew 32% to £72.7m. Of that, £450.8m was from policies sold in the UK and £119.2m internationally. At the time, D&G said it wanted to grow its international sales to account for one-third of premiums.
In a joint statement CVC partner Pev Hooper and senior managing director Peter Rutland said: “We are very pleased to be investing to acquire D&G alongside management. John Pearmund and his team have built a great business, with real long-term growth potential. We look forward to working with them and using CVC’s international resources to help take D&G to the next stage of its development.”
CVC entered exclusive talks to buy Domestic & General last week.
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