The opening days of 2020 have been eventful for iA Financial Corp. Inc., the holding company of iA Financial Group.
The company announced on Friday that it acquired three companies specializing in vehicle warranties in Canada: WGI Service Plan Division and WGI Manufacturing, two subsidiaries of C. Walker Group, located in Vancouver and Scarborough, Toronto, as well as Lubrico Warranty, based in London, Ontario.
Officials said these acquisitions are effective immediately. The company added these acquisitions will be financed from cash on hand and reduce its solvency ratio by 2 percentage points.
The company highlighted C. Walker Group is a market leader and longtime partner of iA Financial Group in the Canadian warranty and ancillary products business. The primary business is wholesale manufacturer and administrator of chemical protection products for the automobile industry through more than 950 independent dealers across Canada.
Officials stressed that WGI Service Plan Division and WGI Manufacturing are well known in the industry for their two brands: Diamond Kote and W3 Solutions. These companies have about 70 employees mainly located in Vancouver and Scarborough.
As for Lubrico Warranty, iA Financial recapped that Lubrico sells vehicle warranties through over 4,000 independent dealerships across Canada (except in the province of Quebec). The warranties also are honored at more than 3,000 authorized repair facilities.
Lubrico has 35 employees, excluding sales distributors.
Officials said the activities of these companies will be managed under the leadership of the dealer services division of iA Financial Group.
“These acquisitions demonstrate how dynamic and important iA Financial Group is in the vehicle warranties industry. We continue to build on our strong foundation in Canada,” said Sean O’Brien, senior vice president of dealer services at iA Financial Group. “With these acquisitions, iA pursues its growth strategy to become a major force in the Canadian automobile ecosystem by achieving scale and industry leading productivity.
“These acquisitions offer substantial opportunities in respect of client and dealer experience and will make iA more present in used vehicle dealerships. We are pleased to welcome the highly professional teams of WGI and Lubrico Warranty,” O’Brien continued.
Chuck Walker, owner of C. Walker Group, shared his perspective on the acquisition.
“We are excited that WGI will be joining a visionary and forward-thinking organization,” Walker said. “iA has demonstrated its commitment to enhancing its car dealer and client experience.
“We are confident that our clients and dealers will be well served and their interests will continue to be well represented,” Walker went on to say.
Lubrico Warranty president Terry Fletcher added, “With Lubrico Warranty becoming part of iA’s dealer services division, we anticipate that synergies will allow us to add significant value to the services offered to Canadian consumers looking to acquire a vehicle through our network of dealer partners.”