Safe-Guard Products International LLC looks like it will be sold to a private-equity firm for a third time.
Stone Point Capital, a financial services-focused private-equity firm, is buying Safe-Guard, a person familiar with the sale said. The purchase price is more than $1 billion, the person said. The seller isGoldman Sachs Group ’s buyout arm.
Founded in 1992, Safe-Guard provides third-party extended warranties for vehicles mainly in the U.S. This can include coverage for tire and wheel, dent and dings, and windshields. Safe-Guard said its contracts protect more than 13 million consumers. The Atlanta company employs more than 500 people, its website said.
News of the Safe-Guard sale first appeared on the FTC website on Dec. 17. The Hart-Scott-Rodino Act requires U.S. companies to report any deal valued at more than $90 million to regulators.
Stone Point, of Greenwich, Connecticut, focuses on companies in financial services including asset management, insurance as well as health care services. The buyout shop typically invests between $75 million equity to $750 million equity per transaction, the firm’s website said. Stone Point is marketing for its eighth flagship fund, which has a $6.5 billion hardcap, Private Equity International reported in February. The firm’s prior pool, Trident VII, collected $5.5 billion in 2017, PitchBook said.
Goldman’s investment dates to January 2013 when it completed its acquisition of Safe-Guard from H.I.G. Capital, a press release from that time said. The deal was valued at $375 million, The Wall Street Journal said. H.I.G. made 20 times its initial investment with the sale, the story said.
Reuters reported in August that Goldman had put Safe-Guard up for sale. Goldman and Jefferies advised on the current process, the person said.
Spokespeople for Goldman and Jefferies declined to comment. Stone Point and Safe-Guard could not be reached for comment.