National Auto Care Corp. is changing hands again.
The provider of F&I products, administration, consulting services, training and marketing support to independent agents, insurance companies, financial institutions, third-party administrators and credit unions, has entered into an agreement to be acquired by Lovell Minnick Partners, a private equity firm specializing in financial and related business services companies.
Financial terms of the transaction were not disclosed, according to a news release distributed on Monday. The announcement did indicate that the transaction is expected to close in the third quarter of 2018.
NAC, established in 1984 and acquired by Trivest Partners in 2012, is headquartered in Jacksonville, Fla. NAC is one of the longest operating providers of products such as vehicle service contracts, guaranteed asset protection, limited warranty, tire, wheel and a full suite of ancillary protection products nationwide.
Through its independent agents, NAC supports more than 2,300 partners that distribute its products. These partners include automobile dealers, credit unions, financial services companies, recreational dealers and other strategic partners across North America.
“NAC is the premier national market leader in developing innovative products that help protect consumers from a wide range of risks that can arise with vehicle or powersport ownership,” said Trevor Rich, a partner at LMP.
“We look forward to partnering with president and CEO Tony Wanderon, who is an accomplished veteran and innovator in the automotive protection industry, and his experienced team at NAC, as our investment positions the company to aggressively pursue acquisitions that complement its strong growth trajectory.”
NAC has invested significantly in the development and implementation of proprietary and third-party technology during the past four years, empowering its dealer and distributor partners with digital contract remittance and customized support services.
In addition, the company provides its distributor partners with a unique variety of support services and incentive programs that drive customer loyalty and strengthen their agency value.
“LMP has strong experience investing in service-oriented businesses across the finance and insurance value chain that will prove invaluable as NAC builds upon our flexible and customized solutions to support our agency distributor partners in driving sales and profitability,” Wanderon said.
“We believe LMP’s expertise in identifying and negotiating strategic transactions will add significant value to our acquisition strategy,” he added.
Troy Templeton, managing partner at Trivest Partners, described the relationship with NAC cultivated since 2012.
“Since our investment six years ago, NAC has grown to be one of the premier providers in the F&I space, and we are extremely proud of our partnership and investment in such an exciting company,” Templeton said.
“We are confident that NAC and the management team are well positioned for continued growth and success through their partnership with LMP,” he went on to say.
Houlihan Lokey served as financial adviser to NAC and Trivest, and Sandler O’Neill was adviser to LMP. Madison Capital Funding and NewStar Financial are providing debt financing for the transaction.