Stone Point Capital Acquires GWC Warranty Corporation
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Stone Point Capital Acquires GWC Warranty Corporation

Stone Point Capital has acquired GWC Warranty Corporation, a portfolio company of CIVC Partners, in partnership with the company’s senior management team. GWC will be owned by Stone Point under the same holding company as Automobile Protection Corporation, a Stone Point portfolio company acquired from the Ford Motor Company in April 2007.

GWC Warranty Corporation is a marketer, administrator and underwriter of vehicle service contracts sold primarily through independent automotive dealers throughout the US. The company is headquartered in Wilkes-Barre, PA (www.gwcwarranty.com).

Automobile Protection Corporation (APCO) is a marketer and administrator of vehicle service contracts and complementary products sold by automotive OEMs as well as automobile and recreational vehicle dealers located throughout the US and Canada. APCO markets its products under the EasyCare brand, as well as other private label automobile manufacturer brands, through a network of independent agents that specialize in consulting with and servicing the automotive and RV dealership markets. The company was founded in 1984 and is based in Norcross, GA (www.easycare.com).

GWC and APCO are highly complementary businesses with limited overlap between the two companies’ end markets, distribution strategies and product sets. This acquisition provides Stone Point with the ability to offer vehicle service contracts and other ancillary products to every independent and franchised dealer in the U.S.

“We are excited to be partnering with Stone Point for the next stage of GWC’s growth,” said GWC CEO Rob Glander. “Stone Point has a strong track record investing in the insurance and warranty sectors and will be a valuable strategic partner for our company as we continue delivering outstanding service to our customers.”

Stone Point Capital serves as the manager of the Trident Funds, which have raised more than $9 billion in committed capital to make investments in lending, banking, insurance, asset management and other financial services companies. The firm is located in Greenwich, CT (www.stonepoint.com).

“We are delighted about the opportunity to partner with Rob Glander and the rest of the GWC management team. We have been studying the warranty and extended service contract administration industry since 2000, and this is our third investment in the sector. GWC has a strong reputation as a leading warranty administrator and insurer, and we look forward to working with the management team to continue their success and take the business to the next level,” said Charles Davis, CEO of Stone Point Capital.

CIVC invests from $15 million to $85 million in middle-market companies that have revenues from $40 million to $300 million and minimum EBITDAs of $5 million. Sectors of interest include business services and financial services. CIVC currently manages over $1.3 billion in private equity funds and is investing out of CIVC Partners Fund IV. Since its founding in 1989, the firm has completed 54 platform transactions and dozens of add‐on acquisitions. CIVC is based in Chicago (www.civc.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-21-13

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