iA Financial acquires three vehicle warranty companiesBy The IJ Staff | January 13 2020 01:15PM
iA Financial Corporation Inc. announced Jan. 10 that it is expanding the company’s dealer services division with the acquisition of three companies, WGI Service Plan Division Inc., located in Vancouver, WGI Manufacturing Inc., located in Scarborough, Ontario, and Lubrico Warranty Inc., based in London, Ontario.
The first two companies are subsidiaries of the C. Walker Group Inc., located in Vancouver, “a longtime partner” of iA Financial Group in the Canadian warranty and ancillary products business. The company is primarily a wholesale manufacturer and administrator of chemical protection products. Lubrico Warranty, meanwhile, sells car warranties through more than 4,000 used vehicle dealerships across the country.
“These acquisitions demonstrate how dynamic and important iA Financial Group is in the vehicle warranties industry,” says dealer services senior vice president, Sean O’Brien. “With these acquisitions, iA pursues its growth strategy to become a major force in the Canadian automobile ecosystem. These acquisitions offer substantial client and dealer experience opportunities and will make iA more present in used vehicle dealerships.”
The company says the acquisitions will be financed from cash on hand. The transactions will reduce the company’s solvency ratio by two percentage points.