KAR Auction Services has purchased PWI Holding, Inc. and its wholly owned subsidiaries — which include Preferred Warranties (PWI) — from Harbert Private Equity Fund II, LLC.

The announcement was made by HPEF II.

“We are very pleased with the performance of PWI and would like to thank the entire team for their efforts. Without their contributions, we would not have reached such a successful outcome,” said Elizabeth Stewart of HPEF II.

“We believe that the KAR acquisition of PWI was a win-win for all parties; HPEF II realized an attractive return on its investment, KAR acquired a well-recognized platform in the vehicle service contract space, and management gained the ability to grow their business with a new, well-capitalized parent.”

Sharing a bit more about Preferred Warranties, it markets vehicle service contracts through independent dealers in 2,200 locations in 15 states throughout the Mid-Atlantic, Midwest and South.

Officials said in the statement that KAR believes the PWI acquisition will bolster its offering to independent dealers and that PWI’s products will be enhanced from the backing it gets from KAR, as well.

A KAR spokesperson said: “KAR believes that the acquisition of PWI will strengthen our overall offering to auto dealers and that Preferred Warranties’ products will be enhanced as a result of being backed by KAR’s financial strength and stability. We are excited about the potential of bringing Preferred Warranties into the KAR family and our end-to-end remarketing solutions.”