No financial details were disclosed, but a source close to the matter told Private Equity International the deal values the company at between £750 million (€871 million, $1.2 billion) and £800 million. Still subject to regulatory approval, it is expected to close in the last quarter of 2013.
The deal will allow Advent to exit an investment it made at the onset of the financial crisis. The US firm acquired D&G for £523.9 million in September 2007, in a public to private transaction that lead to its delisting from the London Stock Exchange. Advent declined to comment on its return from the deal.
The investment was the first fully-financed public-to-private transaction to be sealed after the credit market turbulence observed during the summer of that year. The turmoil resulted in a number of private equity firms delaying or restructuring deals, as it suddenly became more difficult for them to find financing for leveraged buyouts.
Since acquiring the business, Advent has focused on expanding D&G internationally, extending its product offering, and improving customer service. The group has seen its EBITDA increase from £41 million to £83 million over the period, with the total number of goods insured topping 22 million.
Founded in 1921, D&G is now Europe’s largest extended warranty provider, with more than 15 million customers around the UK, Europe, Australia and New Zealand. It employs around 2,500 staff and generates more than £600 million in sales.
The transaction was financed by CVC’s Fund V, which reached its final close in 2005 on €10.75 billion. It comes shortly after the firm wrapped up its latest fundraising effort by reaching a €10.5 billion close on its Fund VI. It also looks set to complete another deal, for the European business of Campbell Soup, for which it has entered exclusive talks.