Greenwich, Connecticut-based Stone Point Capital has agreed to buy Automobile Protection Corporation, a division of the Ford Motor Company. Terms of the agreement were not disclosed.
The deal is expected to close in the second quarter of this year.
The Automobile Protection Corporation provides vehicle service contracts to dealers of all makes and models, Ford said in a statement. Ford bought the company in July of 1999. The current transaction comes after Ford’s announcement that it would review its strategic options on October 11, 2006.
Based in Dearborn, Michigan, Ford includes a number of automotive brands, including Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. The company makes and distributes automobiles in 200 markets worldwide.
Stone Point spun out of Marsh & McLennan Company’s MMC Capital in June of 2005. The firm manages the Trident Funds, which have a total of about $8 billion in committed capital. It invests in the global insurance and financial services sectors.
Stone Point led a consortium to acquire the business of AXA Re, the reinsurance subsidiary of French asset management and financial protection business AXA Group, in June of 2006. Other investors in that deal were Hellman & Friedman, Vestar Capital Partners, Crestview Capital Partners, Och Ziff Management, ABN AMRO and New Mountain Capital.