Abu Dhabi Investment Authority (ADIA) said it has reached an agreement with CVC Capital Partners to acquire a 30 per cent stake in Domestic & General Group (D&G), a leading appliance care specialist based in the UK.
D&G's appliance care plans protect individuals and families against the unexpected costs of appliance repairs and replacements.
With a presence in 11 countries across Europe and Australia, D&G protects 23 million appliances for approximately 16 million customers. It has a leading position in the UK and is present in 1 in 3 households.
D&G said certain funds advised by CVC Capital Partners have reached an agreement with Luxinva SA, an entity ultimately wholly-owned by the ADIA for the strategic stake.
As part of the deal, CVC Funds will continue as D&G's majority shareholder via CVC Fund VII. The acquisition is expected to close by the end of 2019, subject to customary merger control and regulatory clearances.
Since CVC Funds' investment in 2013, D&G has grown annual revenues from £633 million to £811 million ($793.2 million to $1.1 billion), expanded its operations across Europe, and is currently exploring further international opportunities, said the statement.
D&G has also invested significantly in enhancing its customer service, technology infrastructure and digital capabilities to support continued delivery of its ambitious growth plans, it added.
David Tyler, the chairman of D&G, said: "We are delighted to welcome a significant new investor to D&G. ADIA brings a wealth of investment experience from around the globe and has a strong reputation for supporting the growth of high quality companies such as D&G."
"With ADIA’s investment alongside CVC Funds' ongoing commitment, we will have a new ownership structure underpinned by two stable and well-resourced global investors. It is a strong platform enabling us to focus on our growth plans in the UK and internationally. All of us at D&G look forward to working with them," he added.-TradeArabia News Service