SOURCE: Harbert Management Corporation

HMC

June 12, 2013 17:47 ET

Harbert Private Equity Fund II, LLC Exits PWI Holding, Inc.

BIRMINGHAM, AL--(Marketwired - June 12, 2013) - Harbert Private Equity Fund II, LLC ("HPEF II") announced today that it has sold PWI Holding, Inc. and its wholly-owned subsidiaries, including Preferred Warranties ("PWI"), to KAR Auction Services Inc. (NYSE: KAR) ("KAR"). 

 "We are very pleased with the performance of PWI and would like to thank the entire team for their efforts. Without their contributions, we would not have reached such a successful outcome," said HPEF II's Elizabeth Stewart. "We believe that the KAR acquisition of PWI was a win-win for all parties; HPEF II realized an attractive return on its investment, KAR acquired a well-recognized platform in the vehicle service contract space, and management gained the ability to grow their business with a new, well-capitalized parent."

PWI markets vehicle service contracts through independent dealers of used vehicles in 2,200 locations in fifteen Mid-Atlantic, Midwestern and Southern states.  KAR believes the acquisition of PWI will strengthen its offering to independent dealers and that PWI's products will be enhanced as a result of being backed by KAR's financial strength and stability.

KAR is the holding company for ADESA, Inc. ("ADESA"), Insurance Auto Auctions, Inc. ("IAA") and Automotive Finance Corporation ("AFC").  ADESA is a leading provider of wholesale used vehicle auctions with 67 North American locations and its subsidiary OPENLANE provides a leading Internet automotive auction platform.  IAA is a leading salvage vehicle auction company with 163 sites across North America.  AFC is a leading provider of floorplan financing to independent and franchise used vehicle dealers with 104 sites across North America. Together, the company provides a unique, comprehensive, end-to-end solution for its customers' remarketing needs.

Based in Birmingham, Alabama, HPEF II, LLC is a private equity fund sponsored by Harbert Management Corporation ("HMC").  HMC is currently investing from Harbert Private Equity Fund III, LP and seeks to invest in companies located throughout the U.S. and Canada that have operating cash flow of at least $2.0 million and up to $10.0 million.