CIVC Partners’ sale of GWC Warranty Corporation (“GWC”) to Stone Point Capital LLC was named the Consumer and Retail Products M&A Deal of the Year (Under $200mm) at the 3rd Annual New York Champion’s Awards held in New York on June 20, 2013. The annual awards recognize and honor the leading transactions, firms, and dealmakers operating in the greater New York area and are presented by The M&A Advisor and the New York Chapter of the Association for Corporate Growth.
GWC, headquartered in Wilkes-Barre, PA, is a best‐in‐class marketer, administrator, and underwriter of vehicle service contracts sold through automobile dealers. GWC markets its products through a highly differentiated distribution network that leverages an in-house sales force as well as strategic partnerships with independent agents and finance companies. GWC sells through a base of over 3,000 dealers across 40 states.
The successful sale of GWC highlights the benefits of CIVC’s proprietary origination process, value-added approach, and specific affinity area expertise. CIVC identified GWC as a platform investment as a result of the firm’s industry immersion initiative in the automotive warranty sector, which combines proactive research and proprietary origination of investment opportunities. In partnership with management, CIVC acquired GWC on a proprietary basis outside of an auction process. CIVC leveraged its long history in financial services and extensive research on the automotive warranty sector to facilitate a comprehensive growth plan. As examples, CIVC worked closely with senior management to launch new products which now account for over 30% of revenue, expand the geographic footprint from 27 to 40 states, and add new distribution channels through partnerships with auto finance companies and independent agents.
CIVC’s successful investment in GWC builds on the firm’s experience in the financial services industry and, more specifically, the automotive finance and insurance sector. In October of 2011, CIVC acquired Honor Finance, an automotive finance company serving non-prime customers. Also, in December 2011, CIVC sold Innovative Aftermarket Systems, another leading automotive finance and insurance provider focused on ancillary vehicle protection products.
About CIVC Partners, L.P.
CIVC Partners is a Chicago-based private equity firm established in 1970 that provides growth and buyout capital to middle-market companies and executives with a focus on the business services and financial services sectors. The current management team, which has worked together since 1989, has completed 54 platform transactions and dozens of add-on acquisitions. CIVC manages over $1.2 billion in private equity capital and currently invests from CIVC Partners Fund IV. More information on CIVC Partners and its portfolio companies can be found at www.civc.com.