iA Financial Corporation has announced its acquisition of three vehicle warranty companies – namely WGI Service Plan Division, WGI Manufacturing, and Lubrico Warranty.
WGI Service Plan Division in Vancouver and WGI Manufacturing in Scarborough are subsidiaries of C. Walker Group, a long-time partner of iA Financial in the warranty and ancillary products business. The company’s primary business is wholesale manufacturer and administrator of chemical protection products for the automobile industry, via its network of over 950 independent dealers in Canada. The company’s Service Plan Division and Manufacturing divisions together have 70 employees.
Lubrico Warranty sells car warranties through more than 4,000 used vehicle dealerships in Canada (except in the province of Quebec). The warranties are honored at over 3,000 authorized repair facilities. The company has 35 employees, excluding sales distributors.
A release noted that following the closure of the deal, these acquired companies will be managed under iA Financial Group’s Dealer Services division.
“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,” said iA Financial Group Dealer Services senior vice-president Sean O’Brien. “These acquisitions offer substantial opportunities in respect of client and dealer experience and will make iA more present in used vehicle dealerships.”
iA Financial disclosed in a release that the acquisitions will be financed from cash on hand, and will reduce the company’s solvency ratio by two percentage points.
