It looks as if the sale of Domestic & General may be back on as it has been reported that the private equity company CVC Capital Partners (CVC) is engaged in discussions with the Advent International in the US, to acquire the British home appliance warranty company.
The company is being assessed by CVC, which has been given a few weeks of exclusive talks in which to agree a deal.
Domestic & General provides the insurance policies sold to customers at retailers including Argos when they buy household goods such as televisions.
The infamous “sources familiar with the matter” were quoted by Reuters as saying that the company tried to divest the insurance business earlier this year, but could not proceed due to departure of some potential buyers.
The company was listed on the London stock market until 2007 when it was bought for £524million by investment group Advent. CVC is thought to be offering between £700million and £800million for the business, but Advent is believed to want more
The sale of Domestic & General is likely to bring £1bn for Advent International, which acquired the business in 2007, in a $803.26m transaction.
Delivering extended warranty protection for domestic appliances, Domestic & General manages businesses in 11 nations and serves 15 million customers through a workforce of approximately 2,500 people.
Set up in 1981, CVC also operates as an investment advisory firm and employs nearly 270 staff across Europe, Asia and the US.