NORCROSS, Ga. — APCO Holdings Inc. (APCO), a marketer and administrator of vehicle service contracts (VSC) sold by franchised and independent auto dealers, 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 APCO shareholders, including the company’s senior management team and funds managed by Stone Point Capital LLC, will remain investors in the company. 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 headed up by its current management team.
“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, APCO CEO. “Our future partnership with Ontario Teachers’ Pension is an exciting new chapter for APCO and our market leading brands: EasyCare and GWC.”
Jane Rowe, senior vice president of private capital for Ontario Teachers’ Pension, added: “APCO has an attractive and diversified business model and is well positioned to benefit from favorable dynamics in its industry. We look forward to supporting the strong management team that has proven its ability to grow the business organically and through acquisitions.”
Under its eight-year partnership with Stone Point Capital, APCO has completed several acquisitions, including its acquisition of GWC Warranty Corp. “We want to thank Larry Dorfman, John Lee, Rob Glander and the rest of the APCO team for their leadership,” said Chuck Davis, CEO of Stone Point. “We look forward to participating in the company’s continued success with our partners at Ontario Teachers’ Pension.”