6 December 2007, London - Advent International, the global private equity firm, today announced the completion of the £523.9 million acquisition of Domestic & General Group plc (D&G) following a successful offer for its shares listed on the London Stock Exchange.
D&G is the first fully-financed public-to-private transaction announced in the UK since this summer’s turbulence in the credit markets.
It is also Advent’s second UK financial services deal completed since May, following the acquisition of Lloyds TSB Registrars (now Equiniti), and the fifth internationally in the space of 10 months, underscoring Advent’s depth of expertise in this sector.
D&G is the UK’s leading specialist provider of extended warranty plans for domestic electrical goods. The company currently provides cover for over 6 million appliances for 4.2 million customers. D&G uses a full range of direct marketing techniques to market extended warranties for the majority of the major white and brown goods manufacturers in the UK, including brands such as Electrolux, Hotpoint, Bosch, Sony and Hoover. The business also has an expanding international presence with established successful relationships in Germany, Spain, France, Poland and Australia.
The prospects for D&G are excellent. As well as growth in the UK extended warranty market, driven by the increasing sales of insurable products, including flat screen TVs, expansion in Europe represents a strategic growth opportunity. Compared to the UK, the market for extended warranties in Continental Europe is significantly under-developed. Central and Eastern Europe is particularly attractive, with strong growth in appliance sales and lower disposable incomes resulting in a risk-adverse attitude to product failure.
Advent’s other financial services investments made this year are CAMS, India’s leading provider of outsourced back offices services to the asset management industry (October); Sophis, a French financial services software provider (July); and Pronto!, a Uruguayan consumer credit company (February).