APCO Holdings, Inc. (APCO), a leading marketer and administrator of vehicle service contracts (VSCs) sold by franchised and independent auto dealers throughout the U.S., today announced that it has entered into a definitive agreement for a majority stake of the company to be acquired by Ontario Teachers’ Pension Plan (Ontario Teachers’). Following the transaction, certain of APCO’s shareholders, including the company’s senior management and funds managed by Stone Point Capital LLC, will remain shareholders in the business. The transaction, which is subject to customary closing conditions, is expected to close in December. APCO will continue to be operated as a separate business operation with the current management team remaining in place.
“We want to thank Stone Point Capital for their partnership over the past years. We have been very fortunate to have had the opportunity to be with them and learn from their world class organization. We also appreciate their continued vote of confidence as they remain a significant investor in APCO’s future,” said Larry Dorfman, Chief Executive Officer of APCO. “Our future partnership with Ontario Teachers’ is an exciting new chapter for APCO and our market leading brands: EasyCare and GWC. Ontario Teachers’ will be a valuable resource for capital and collaboration to APCO as we continue to grow our business and fulfill our mission to transform the dealership experience.”
“APCO has an attractive and diversified business model and is well positioned to benefit from favorable dynamics in its industry,” said Jane Rowe, Ontario Teachers’ Senior Vice-President, Private Capital. “We look forward to supporting the strong management team that has proven its ability to grow the business organically and through acquisitions.”
“We have enjoyed a terrific partnership with the APCO team over the past eight years. We have worked with the company to complete several acquisitions, including the 2013 acquisition of GWC Warranty Corporation, which significantly increased APCO’s scale, diversified its product offerings and added management depth. We want to thank Larry Dorfman, John Lee, Rob Glander and the rest of the APCO team for their leadership. We look forward to participating in the company’s continued success with our partners at Ontario Teachers’,” said Chuck Davis, Chief Executive Officer of Stone Point.