H.I.G. Capital Buying Warrentech For $35M
By Steve Smith -- TWICE, 6/19/2006
Bedford, Texas — Warrantech, the service contract and warranty provider, reports that it has signed a deal to be acquired by H.I.G. Capital, a private equity firm headquartered in Miami, Fla., for approximately $35 million.
The $35 million price tag for Warrantech includes the purchase of $20 million of the company's debt by H.I.G., the warranty provider said.
Warrantech's board unanimously approved the merger and will recommend it to the company's stockholders. In addition, shareholders representing 35.5 percent of all shares have agreed to vote to approve the deal, the company said.
The merger is expected to close prior to the end of the year and is subject to Warrantech shareholder approval, as well as other customary closing conditions.
Joel San Antonio, Warrantech's chairman/CEO, said in a prepared statement that the deal will provide the company with “a better opportunity to grow its business as a private company and better service our customer base. In addition H.I.G. has an excellent track record of building value in its portfolio companies by building strong financial and strategic support.”
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