ITASCA, IL, March 4, 2019 /PRNewswire/ - (NYSE: KFS) Kingsway
Financial Services Inc. ("Kingsway" or the "Company") today
announced it has closed on its acquisition of Geminus Holding
Company, Inc. ("Geminus"), a specialty, full-service provider of
vehicle service contracts ("VSCs") and other finance and insurance
("F&I") products to used car buyers around the country.
Geminus, headquartered in Wilkes-Barre, Pennsylvania, has been creating,
marketing and administering VSCs and F&I products on
high-mileage used cars through its subsidiaries, The Penn Warranty
Corporation ("Penn") and Prime Auto Care, Inc. ("Prime"), since
1988. Penn and Prime distribute these products via
independent used car dealerships and franchised car dealerships,
respectively. Geminus takes pride in providing much needed risk
protection services to consumers around the country on one of their
most important personal assets, their vehicles.
Management Comments
John T.
Fitzgerald, President and Chief Executive Officer, stated,
"As previously communicated, a key component of our business
strategy is to actively pursue compelling warranty company
acquisitions. We are delighted to add Penn and Prime to our
growing portfolio of businesses in the extended warranty industry.
We think very highly of Jude Tuma
and the entire Geminus team and feel that, with Kingsway's
resources and support, Penn and Prime have attractive business
prospects. We expect the transaction will be immediately
accretive to our cash flow and operating income."
Jude Tuma, Geminus' Chief
Executive Officer, said, "We have spent many years building a
strong brand and reputation that consumers can depend on. We
look forward to joining the Kingsway family as we continue to build
our reach and protect our customers' valued assets."
About the Company
Kingsway is a holding company that
owns or controls subsidiaries primarily in the extended warranty,
asset management and real estate industries. The common
shares of Kingsway are listed on the New York Stock Exchange under
the trading symbol "KFS."
Forward-Looking Statements
This press release includes
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 that are not historical facts, and involve
risks and uncertainties that could cause actual results to differ
materially from those expected and projected. Words such as
"expects," "believes," "anticipates," "intends," "estimates,"
"seeks" and variations and similar words and expressions are
intended to identify such forward-looking statements. Such
forward-looking statements relate to future events or future
performance, but reflect Kingsway management's current beliefs,
based on information currently available. A number of factors
could cause actual events, performance or results to differ
materially from the events, performance and results discussed in
the forward-looking statements. For information identifying
important factors that could cause actual results to differ
materially from those anticipated in the forward-looking
statements, please refer to the section entitled "Risk Factors" in
the Company's Quarterly Report on Form 10-Q for the period ended
September 30, 2018. Except as
expressly required by applicable securities law, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
Additional Information
Additional information about
Kingsway, including a copy of its 2017 Annual Report and filings on
Forms 10-Q and 8-K, can be accessed on the Canadian Securities
Administrators' website at www.sedar.com, on the EDGAR section of
the U.S. Securities and Exchange Commission's website at
www.sec.gov or through the Company's website at
www.kingsway-financial.com.
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SOURCE Kingsway Financial Services Inc.