ITASCA, Ill., Oct. 13, 2020 /PRNewswire/ - (NYSE: KFS) Kingsway
Financial Services Inc. ("Kingsway") today announced the signing of
a definitive agreement to acquire PWI Holdings, Inc. from ADESA
Dealer Services, LLC, a subsidiary of (NYSE: KAR) KAR Auction
Services, Inc. d/b/a KAR Global ("KAR"), subject to
certain regulatory approvals and other customary closing
conditions. PWI, through its subsidiaries Preferred Warranties,
Inc., Superior Warranties, Inc., Preferred Warranties of
Florida, Inc., and Preferred
Nationwide Reinsurance Company, Ltd. (collectively, "PWI"),
markets, sells and administers vehicle service contracts in all
fifty states, primarily through a network of automobile dealer
partners.
"I am excited to welcome the PWI team to the Kingsway family of
companies," said Kingsway President
and CEO, J.T. Fitzgerald. "Under
KAR's ownership, PWI has emerged as a leader in the vehicle service
contract and extended warranty sector, and I believe we can further
strengthen that position going forward. PWI is an excellent example
of our capital allocation philosophy at work – we expect to pay a
reasonable price for a business that we believe can generate high
returns on our invested capital. I'm confident that PWI will be an
excellent addition to our already solid portfolio of warranty
holdings."
The purchase price for the acquisition is $24.5 million (subject to customary adjustments)
and is expected to close prior to year-end, pending receipt of the
requisite regulatory approvals and satisfaction of other customary
closing conditions. Kingsway expects to fund the purchase price via
a mix of cash on hand and third-party financing. Ice Miller LLP
served as legal counsel to Kingsway and Taft Stettinius &
Hollister LLP served as legal counsel to KAR in connection with the
transaction.
About Kingsway
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 may include "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; however, the absence of any such words does not mean
that a statement is a not a forward-looking statement. 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 Kingsway's Annual Report
on Form 10-K for the fiscal year ended December 31, 2019 (the "2019 Annual Report").
Except as expressly required by applicable securities law, Kingsway
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 the
2019 Annual Report and filings on Forms 10-Q and 8-K, can be
accessed on the EDGAR section of the U.S. Securities and Exchange
Commission's website at www.sec.gov, on the Canadian Securities
Administrators' website at www.sedar.com, or through Kingsway's
website at www.kingsway-financial.com.
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SOURCE Kingsway Financial Services Inc.