Asurion Acquires D&G: £2.1bn for Europe's Warranty Leader
MAAGA Part II: Making Asurion's Appliances Great Again...
Key Findings:
- Asurion acquires D&G for £2.1bn, valuing the business at 13x FY2025 EBITDA
- Deal solves Asurion’s European scale problem; D&G gains US appliance market optionality via Whirlpool
- Asurion financing acquisition with $1.25bn new senior secured notes
- D&G’s existing $1.1bn debt rolls over with standalone non-recourse structure
- CVC exits after 12 years at 2.8x on headline values; ADIA achieves c.90% uplift over six years
- My September valuation range of £1.8bn-£2.0bn landed within 5% of the outcome
- AIZ trades at high single-digit multiples vs D&G’s 13x - strategic premium or market mispricing?
- Competitive pressure intensifies for Likewize and others; consolidation likely to accelerate
If you’ve not read my September 15 Research Update on Domestic & General (D&G), it provides in-depth analysis of their FY2025 results1. Similarly, whilst the vast majority of Asurion’s global business is, unfortunately for me, behind closed financial reporting doors, I provided analysis of their FY2024 European operations in October this year2. If you’ve got an extra 10 minutes, it might be worth taking a look at those reports before diving in here. Don’t worry if not, I’ll recap the main points.
Deal Summary
After owning D&G since 2013, CVC has decided to cash out, bringing an end to 18 years of private equity ownership. I seem to remember this option being under consideration several times over the past decade. To be frank, if it wasn’t for the 2018 business model transition, it probably would have occurred sooner, rather than them accepting a minority partner in the form of the Abu Dhabi Investment Authority (ADIA) in 2019. According to an FT article at the time, ADIA’s stake valued D&G at approximately £1.1bn3.
This time around, the consideration is £2.1bn according to Bloomberg with other terms remaining undisclosed4. The FY2025 EBITDA of £162m at the D&G holding company, Galaxy Finco, implies an approximate 13x multiple reflecting strategic value in their subscription model over usual insurance company multiples (8-10x).
CVC’s Managing Partner, Pev Hooper, noted that D&G had transformed “from a UK-focused warranty provider into a global, subscription-based and digitally-enabled appliance care leader” under their ownership, surpassing £1bn in annual revenue and expanding into 12 markets5. That’s the PR version. The reality involved a regulatory transition, a minority partner to shore up the balance sheet, and more grinding than the quote suggests. Still, the exit multiple speaks for itself.
Asurion plan to continue operating D&G as a standalone brand, wise given the broad familiarity they command. Matthew Crummack will remain as CEO. This suggests operational continuity although there are some likely candidates for cost synergies as you look across the combined group.
The deal is expected to close mid-2026 and is, of course, subject to regulatory approvals. I would expect this to be relatively straightforward, given both brands are already supervised and the broad definition (General Insurance) that competition authorities have previously taken to the European warranty market. S&P Global Ratings has assigned a ‘BB-’ rating to Asurion’s $1.25bn senior secured notes being issued to fund the acquisition. D&G’s existing debt, approximately $1.1bn across sterling notes and a euro term loan, will be rolled over under a standalone, non-recourse structure, meaning the two businesses maintain separate capital stacks post-completion6.
Continue reading for:
Deal Logic
Financial Analysis
Strategic Implications