TH Lee, Freeman Spogli invest in warranty co

The two private equity firms have acquired a significant equity interest in NEW Customer Services Companies, a provider of warranty and extended-service contracts.

Boston-based TH Lee Putnam Ventures and Los Angeles-based Freeman Spogli have announced that they have acquired a ‘significant equity interest’ in NEW Customer Service Companies alongside current management.

Terms of the deal were not disclosed, according to a statement.

NEW is an independent administrator of warranty and extended-service contracts for retailers, utilities, manufacturers and financial services firms. The deal gives the Virginia company an enterprise value of approximately $370 million.

TH Lee managing director Renny Smith and principal Sasha Grubman, and Freeman Spogli partner John Roth led the deal.

CIBC provided debt financing for the transaction and also advised NEW.

Last month, TH Lee agreed to buy building products company Nortek from New York buyout firm Kelso & Co. for $1.75 billion. The acquisition followed Jun’s purchase of United Pet Group through the firm’s portfolio holding United Industries Corporation for $360 million.

In May, Freeman Spogli announced the sale of Hudson Respiratory Care to Teleflex for $460 million. The announcement came less than two months after Freeman Spogli at the end of March announced the close of its fifth fund, FS Equity Partners V, on $1 billion.