TPG Buying The Warranty Group; Onex Pencils In 3.1x Multiple
March 24, 2014
TPG has agreed to buy The Warranty Group and its operating units from Onex for an enterprise value of about $1.5 billion. Operating in more than 35 countries, The Warranty Group provides underwriting, claims administration and marketing expertise to providers of consumer goods like automobiles, homes, consumer appliances and more.
Including carried interest, Onex will reap about $385 million from the sale of the company, which it bought in 2006 for $710 million, $498 million of which was equity. Accounting for prior distributions totaling $403 million, Onex is realizing roughly $1.5 billion in proceeds from its investment, an 18% rate of return and 3.1x multiple on invested capital.