Buyout giant CVC paves way for sale of warranty provider D&G | Money News

CVC Capital Partners is paving the way for a fresh attempt to sell Domestic & General Group (D&G), one of Britain’s biggest warranty providers.

Sky News has learnt that the Amsterdam-listed private equity firm is beginning to consider options for offloading its majority stake in the company.

D&G provides cover for electrical products purchased from more than 100 brands, including Hoover, John Lewis, Samsung and Argos.

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CVC paid about £750m to buy D&G from fellow buyout firm Advent International 12 years ago – making it an unusually long-term investment by the standards of the private equity industry.

It had been a publicly listed company before being taken private in 2007.

The current owner sold a 30% stake in D&G to the Abu Dhabi Investment Authority in 2019 after running a full auction process and considering returning the appliances insurer to the London stock market.

Earlier this year, D&G underwent an £800m refinancing, with the proceeds used to pay off existing debts.

Options for CVC could be to sell D&G to another vehicle controlled by the existing owner – known as a continuation vehicle – or to find a merger partner for the company.

Sources say CVC’s preference, however, would be to dispose of its interest to third parties.

It was unclear on Tuesday how imminent a transaction might be.

CVC declined to comment.