Two F&I product providers that might be familiar to nearly 15,000 dealerships are joining forces via an acquisition.
This week, Amynta Group, an insurance services company and provider of warranty protection products, entered into an agreement to acquire American Auto Guardian (AAGI), another provider of protection products and services to an extensive network of OEMs, agents, independent dealers and dealer groups.
According to a news release, terms of the transaction were not disclosed. The company did say the transaction will be funded by a combination of debt, cash on hand and new equity invested by existing shareholders and Amynta management.
Amynta added closing of the transaction is subject to customary conditions and regulatory approvals.
Amynta highlighted AAGI is a recognized leader in developing, marketing and administering vehicle service contracts and other automotive aftermarket protection products. The company operates through approximately 250 distribution partners and serves more than 4,500 dealers across the U.S. The acquisition of AAGI aligns with Amynta’s commitment to provide best-in-class products and services to its distribution partners and dealers.
Together with AAGI, Amynta will serve approximately 15,000 dealerships in the U.S. and Canada through more than 1,400 agents, protecting more than 5.4 million vehicles. AAGI will continue to operate under the leadership of Tim Brugh and the company’s senior management team.
“AAGI has built an outstanding company over 20 years, focused on consistently delivering performance to their distribution partners and dealers, with a successful track record of growth and profitability under the leadership of Tim Brugh,” Amynta chairman and chief executive officer Rob Giammarco said.
“AAGI brings new distribution partners, OEM relationships, dealer networks and geographic reach, broadening our presence, particularly in the Midwest. AAGI expands our warranty offerings, providing incremental opportunities to drive growth across our business,” Giammarco continued.
Brugh, who is chief executive officer of AAGI, added, “Joining forces with Amynta is a great opportunity for AAGI, as the enhanced scale and reach will help us deliver even more capabilities to our distribution partners and dealers. I see many new opportunities for our clients, partners and employees.
“We are looking forward to joining Amynta and continuing to provide our clients and partners with best-in-class products and services and the ease of doing business they have come to expect,” Brugh went on to say.
BofA Merrill Lynch and MHT Partners served as financial advisors to Amynta, and Kirkland & Ellis served as legal advisor. Houlihan Lokey served as financial advisor to AAGI, and Bryan Cave Leighton Paisner served as legal advisor.