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“We knew and respected them as competitors,” Kurtz said of U.S. Warranty.
Protective Life Corp., parent company of F&I product provider and training firm Protective Asset Protection, will acquire Unites States Warranty Corp. later this year, the companies said last week.
For the companies’ dealership clients, the acquisition “expands the product options for them in terms of service contracts, GAP and ancillary products,” Rick Kurtz, senior vice president for distribution at Protective Asset Protection, told Automotive News. Protective expects the deal to close on or after Nov. 1.
“We knew and respected them as competitors,” Kurtz said of U.S. Warranty. After hearing that the private, family-owned company might be interested in selling, Protective “aggressively pursued this opportunity,” he said.
U.S. Warranty, of Pompano Beach, Fla., provides vehicle service contracts, GAP policies and maintenance and protection products to dealerships in 46 states. Protective Asset Protection, of St. Louis, offers a similar suite of products in all 50 states and Puerto Rico.
U.S. Warranty has dealership clients in areas where Protective has room for growth, such as in the Southeast and West, Kurtz said. “We view this as two organizations with complementary skill sets. Bringing them together makes the two stronger,” he said.
U.S. Warranty will continue to operate from Pompano Beach. The company’s leadership and employees will join Protective but continue to manage U.S. Warranty as part of the transaction, a statement said.
“This is an acquisition to gain knowledge, expertise and market share and grow that with these companies working together,” Kurtz said.
Mark Macek, president of U.S. Warranty, said in a company statement that the two firms have “similar client-centric values and culture.”
“Together with Protective,” he said, “we expect to be the leader in the finance and insurance segment of the automobile industry, and we’re looking forward to the substantial growth opportunities in the future.”
Protective Life buys competitor United States Warranty
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