CVC Capital Partners has acquired Domestic & General Group in partnership with the existing management team. The deal is one of the largest private equity transactions in the UK this year. Jamieson advised the team led by John Pearmund, CEO, on structuring the terms of their reinvestment and new equity incentive arrangements.
D&G is Europe’s leading extended warranty specialist with operations spanning the UK and 9 other European countries, as well as Australia and New Zealand. The group provides product protection on over 22m major appliances and consumer electronic products, for 15m customers, generating annual sales of over GBP 600m. D&G has long-standing partnerships with the major appliance manufacturers and retailers, to provide consumers with extended warranty services across the full range of domestic appliances.
The process was a competitive auction with strong interest from a number of private equity houses. Management’s terms were negotiated within a tight timescale and the entire team will remain with the company after the completion of the deal, reinvesting a “significant proportion” of their proceeds from the sale.
Completion of the transaction is subject to customary regulatory clearances and is expected to take place during Q4 2013.