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APCO Holdings, LLC, Acquires National Auto Care, Creating Nationwide F&I Force

 · 4 min read

Industry-leading F&I providers combine

NORCROSS, Ga. — APCO Holdings (“APCO”), a leading provider and administrator of automotive Finance & Insurance (“F&I”) products and home to the EasyCare and GWC Warranty brands, has acquired National Auto Care (“NAC”).

NAC is a highly respected provider of F&I products, administration, consulting services, training, and marketing support. With more than 35 years of demonstrated success, NAC provides products and services to thousands of auto, RV, and powersports dealers, credit unions and financial institutions.

“We are excited by all the benefits that this acquisition brings to APCO. It completes our national footprint, expands our range of products for automobile and RV dealers, adds new segments like Powersports, and strengthens our training and business development capabilities to keep us at the forefront of helping dealers, agents and partners maintain F&I profitability as the market returns to a more traditional, competitive state,” said Finbarr O’Neill, Executive Chairman of APCO.

Following the close of the transaction, Tony Wanderon, who was CEO of NAC, has become CEO of APCO effective immediately. Scot Eisenfelder who was CEO of APCO previously has stepped down in conjunction with this transaction.

“We thank Scot for his dedicated leadership and the progress made in this very challenging market. Scot added immense value to this organization during his tenure.”, said Mr. O’Neill. “We look forward to Tony’s leadership, leveraging his deep experience in the F&I arena, his demonstrated history of building strong businesses to successfully support auto retail F&I operations, while creating a strong customer-oriented culture.”

“Our teams share many similar philosophies in how our companies operate,” said Tony Wanderon, CEO of APCO. “We are all committed to quality and excellence in everything we do, most importantly taking care of customers, helping them optimize their dealer F&I operations while creating a workplace where our employees feel valued. I am confident that our future is bright.”

The transaction was financed substantially by an equity injection by majority shareholder Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) and third-party debt financing. Terms of the transaction are not being disclosed.

“We have been APCO’s majority shareholder since 2016 and are excited to continue supporting the company in its next phase of growth”, says Jeff Markusson, Senior Managing Director, Financial Services at Ontario Teachers’. “We believe the combination of the two complementary companies creates a true leader in the F&I space with enhanced and diversified distribution channels, prominent brand and a broad product portfolio with multiple organic and M&A growth levers backed by a top leadership team.”

APCO’s and NAC’s shared expertise and complementary offerings will be leveraged to help dealers meet changing market needs, such as the continued emergence of digital retailing and EV sales. The expansive, combined F&I product suite will allow dealers to capture more revenue through increased sales opportunities, including additional EV offerings, high-mileage products, access to the MotorTrend Certified program and expertise in both RV and powersports industries.

RBC Capital Markets acted as lead financial advisor to APCO, with TD Securities, Scotiabank, BMO Capital Markets, and CIBC World Markets serving as co-advisors. Debt financing for the transaction was led by Royal Bank of Canada, who acted as lead left arranger & bookrunner, with TD, Scotiabank, Bank of Montreal, and Canadian Imperial Bank of Commerce serving as joint lead arrangers & bookrunners. Weil, Gotshal & Manges acted as legal adviser to APCO.

About APCO Holdings, LLC

Since 1984, APCO has grown to become a leading provider and administrator of F&I products for the auto industry. Built on a foundation of financial security and a commitment to understanding our customers' needs, APCO is a trusted partner to some of the most well-respected insurers, highly successful dealerships, and leading auto industry players in the country. The company markets its products using the EasyCare, GWC Warranty, and MemberCare brands, as well as other private label products, through a network of independent agents and an internal salesforce that specialize in consulting with and servicing the automotive dealership markets. EasyCare, GWC Warranty, and MemberCare F&I products are the only "MotorTrend® Recommended Best Buy" in the industry. They also carry top ratings from the Better Business Bureau, have protected over 11 million customers, and have paid over $3.5 billion in claims.

About National Auto Care

NAC is one of the longest operating providers of products such as vehicle service contracts, guaranteed asset protection, limited warranty, tire and wheel and a full suite of ancillary protection products nationwide. NAC provides F&I products, administration, consulting services, training and marketing support to independent agents, insurance companies, auto dealers, RV dealers, powersports dealers, financial institutions, third-party administrators, and credit unions.

About Ontario Teachers' Pension Plan

Ontario Teachers’ is a global investor with net assets of $242.5 billion as at June 30, 2022. We invest in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 333,000 working members and pensioners.

With offices in Hong Kong, London, Mumbai, San Francisco, Singapore and Toronto, our more than 400 investment professionals bring deep expertise in industries ranging from agriculture to artificial intelligence. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.6% since the plan’s founding in 1990. At Ontario Teachers’, we don’t just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit otpp.com and follow us on Twitter @OtppInfo.