Aon Corporation announced May 22 that it has entered into a definitive agreement to acquire First Extended, Inc., an administrator of extended service contract products.
Operating as part of Aon Warranty Group, First Extended will offer dealer mechanical repair programs. The acquisition is expected to be financed with Aon common stock and will be accounted for under the purchase method of accounting. Additional terms of the agreement were not disclosed. The transaction is subject to regulatory approval.
First Extended says it will enhance Aon Warranty Group's current warranty offerings by providing additional choices in automotive mechanical repair programs. First Extended will also allow Aon Warranty Group to add distribution channels by reaching dealerships through their relationships with general agencies.
"First Extended provides a unique niche of extended warranty programs to the retail automotive industry, complimenting the many products and services we currently provide, " stated David L. Cole, chairman, president, and CEO of Aon Warranty Group. "Adding First Extended to the Aon Warranty Group family fully rounds out the offerings we have for the retail automotive industry. With over 25 years of experience, and an excellent relationship with the general agent market, First Extended will strengthen Aon Warranty Group's position as the largest independent automotive service contract provider in the US."
Based in Dallas, Texas, First Extended is an administrator of extended service contract products and services for more than 1,700 automobile dealers of new and pre-owned cars and trucks throughout the U.S. Founded in 1974 by Carl Westcott, First Extended provides services including new vehicle service contracts, pre-owned vehicle service contracts, oil service plans and Guaranteed Asset Protection to more than one million vehicle owners.
"We're excited about joining the Aon Warranty Group family," said John Curtis, president of First Extended, Inc. "As a member of the Aon family, we will continue our growth through our agents and employees, while having the benefit of resources that would not have been available as an independent company."
About Aon Corporation
Aon Corporation (www.aon.com) is a holding company that is comprised of a family of insurance brokerage, consulting and insurance underwriting subsidiaries. Aon's common stock is listed on the New York, Chicago, Frankfurt and London stock exchanges.
Aon Warranty Group is a wholly owned subsidiary of Aon Corporation, providing products and services to the world's premier automotive, home, consumer electronics, and recreational industries, among others. With more than three billion service contracts managed worldwide, Aon Warranty Group is an independent supplier of warranty and customer relationship programs.
