The activities of these companies will be managed under the leadership of the Dealer Services division of iA Financial Group
iA Financial headquarters in Canada's Quebec City. (Credit: Wikipedia.org/Nonztp)
iA Financial Corporation Inc. (the “Company”), the holding company of iA Financial Group, today announced the acquisition of three companies specializing in vehicle warranties in Canada: WGI Service Plan Division Inc. and WGI Manufacturing Inc., two subsidiaries of C. Walker Group Inc. located in Vancouver and Scarborough, as well as Lubrico Warranty Inc. based in London. These acquisitions are effective immediately.
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. 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, it sells car warranties through over 4,000 used vehicle dealerships across Canada (except in the province of Quebec), which are honoured at over 3,000 authorized repair facilities. It has 35 employees, excluding sales distributors.
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, 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.”
“We are excited that WGI will be joining a visionary and forward-thinking organization,” noted Chuck Walker, owner of C. Walker Group Inc. “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.”
“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,” remarked Terry Fletcher, President of Lubrico Warranty Inc.
These acquisitions will be financed from cash on hand and reduce the Company’s solvency ratio by two percentage points.
Source: Company Press Release