Investing / Private Equity / Onex Partners / The Warranty Group text size [+][]
The Warranty Group
Industry: Insurance Provider
Investment date: November 2006
Acquired by: Onex Partners I, Onex Partners II
Investment: $498 million(1) /
$157 million from Onex
Ownership: 91% / Onex' portion is 29%
Status: Unrealized
Head office: Chicago, Illinois
Annual revenues (2013): $1.2 billion
(1) The investment is split almost equally between Onex Partners I and Onex Partners II.

The Warranty Group, Inc. is one of the world’s largest integrated underwriter and administrator of extended warranties on a wide variety of consumer goods, including automobiles, consumer electronics, medical devices, fitness equipment, power tools, appliances and home systems. The Warranty Group also provides credit insurance and other specialty insurance products. It operates with over 1,800 employees and with operations and offices in 30 countries. The Warranty Group was formerly a division of Aon Corporation.

In March 2014, Onex agreed to sell The Warranty Group for an enterprise value of approximately $1.5 billion.  The Onex Partners I and Onex Partners II Groups will receive net proceeds of approximately $1.1 billion. The Onex Partners I and Onex Partners II Groups invested a total of $498 million to acquire The Warranty Group in late 2006 and will have received total net proceeds of approximately $1.5 billion, including prior distributions.  Onex' portion of the sale proceeds will be approximately $385 million, including estimated carried interest of $50 million and after the reduction for the estimated amounts on account of the MIP. The transaction is expected to close during the third quarter of 2014 and is subject to customary closing conditions and regulatory approvals.