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Buyout giant CVC paves way for sale of warranty provider D&G
CVC Capital Partners is paving the way for a fresh attempt to sell Domestic & General Group (D&G), one of Britain's biggest warranty providers.
Sky News has learnt the Amsterdam-listed private equity firm is beginning to consider options for offloading its majority stake in the company. D&G provides cover for electrical products purchased from more than 100 brands, including Hoover, John Lewis, Samsung and Argos.
Money latest: Common insurance that's probably a waste of money CVC paid about £750m to buy D&G from fellow buyout firm Advent International 12 years ago - making it an unusually long-term investment by the standards of the private equity industry. It had been a publicly listed company before being taken private in 2007.
The current owner sold a 30% stake in D&G to the Abu Dhabi Investment Authority in 2019 after running a full auction process and considering returning the appliances insurer to the London stock market. Earlier this year, D&G underwent an £800m refinancing, with the proceeds used to pay off existing debts.
Read more from Sky News:125 jobs to go at Lindsey oil refineryMost ransomware victims pay up - with mixed results Options for CVC could be to sell D&G to another vehicle controlled by the existing owner - known as a continuation vehicle - or to find a merger partner for the company. Sources say CVC's preference, however, would be to dispose of its interest to third parties.
It was unclear on Tuesday how imminent a transaction might be. CVC declined to comment..
Amir Nisi
Creative and experienced content writer with 6+ years of experience lazy to create unique content strategy for News5 to turn website visitors into customers.
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