Houlihan Lokey Advises American Financial & Automotive Services
Houlihan Lokey is pleased to announce that American Financial & Automotive Services, Inc. (AFAS) has been acquired by Assurant, Inc. (NYSE:AIZ). The transaction closed on May 1, 2020.
Headquartered in Houston, Texas, AFAS is a provider of auto finance and insurance products and services, including vehicle service contracts, guaranteed asset protection insurance, and other ancillary products sold directly through a network of nearly 600 franchised dealership clients across 40 states. For more than 40 years, AFAS has assisted dealers nationwide in maximizing profits legally and ethically. Putting client needs first and exceeding their expectations has been the driving force behind AFAS' continued growth in the automotive industry. AFAS’ proven status as a market leader is based on the ideal that by combining experienced personnel and a portfolio of innovative products and services, backed and insured by the industry's strongest carriers, each dealership can reach their true profit potential.
Assurant is a leading global provider of lifestyle and housing solutions that support, protect, and connect major consumer purchases. Anticipating the evolving needs of consumers, Assurant partners with the world’s leading brands to develop innovative products and services and to deliver an enhanced customer experience. A Fortune 500 company with a presence in 21 countries, Assurant offers mobile device solutions, extended service contracts, vehicle protection services, pre-funded funeral insurance, renters insurance, lender-placed insurance products, and other specialty products. The Assurant Foundation strengthens communities by supporting charitable partners that help protect where people live and can thrive, connect with local resources, inspire inclusion, and prepare leaders of the future.
Assurant has maintained a longstanding, 20+ year relationship with AFAS, serving as the primary provider of vehicle service contracts and related auto products and services sold by AFAS. The transaction offers significant pre-identified synergies, including greater scale and operating efficiencies, and the ability to benefit from long-term favorable market trends that support increasing vehicle service contract attachment rates. The AFAS management team will remain in their current roles.
Houlihan Lokey served as the exclusive financial advisor to AFAS and assisted in structuring and negotiating the transaction. The transaction highlights Houlihan Lokey's continued position as a leading advisor within the insurance and warranty industry.
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