Houlihan Lokey Advises Geminus Capital Partners

Houlihan Lokey is pleased to announce that Geminus Holdings Company, Inc., and its primary subsidiaries, the Penn Warranty Corporation and Prime Auto Care, Inc., have been sold to Kingsway Financial Services, Inc. The transaction closed on March 4, 2019. 

Founded in 2007, Geminus Capital Partners is a Philadelphia-based, privately-held investment firm that was founded to acquire and actively operate targeted manufacturing and service companies. Geminus provides liquidity options for small and medium-sized business owners and focuses on profitable companies in the U.S. with annual revenues of $10 million to $40 million. 

Geminus Holdings Company was created in 2008 under Geminus Capital Partners, LLC, and has been creating, marketing, and administering vehicle service contracts (VSCs) and finance and insurance (F&I) products on high-mileage used cars through its primary subsidiaries, The Penn Warranty Corporation and Prime Auto Care, Inc.

Established in 1988, The Penn Warranty Corporation was founded as a provider of used car extended service contracts, sold exclusively through independent car dealerships. Over the past 30 years, Penn Warranty has grown to become one of the oldest and most reputable automotive warranty providers to the independent dealership market. Penn Warranty offers both structural contract plans backed by AM Best "A" rated insurer and other after-market products including gap insurance coverage and emergency roadside assistance programs. The company is led by Jude Tuma since March 2008 when the company was purchased by Geminus Capital.

Prime Auto Care was established in 2012 to create and market after-market products for new and franchised dealers, larger independents, banks, and other financial institutions. Prime Auto Care products include service contracts, gap coverage, tire and wheel coverage, appearance protection products, key replacement, warranty, and more.

Kingsway is a holding company that owns or controls subsidiaries primarily in the extended warranty, asset management, and real estate industries. The common shares of Kingsway are listed on the New York Stock Exchange under the trading symbol "KFS".

Houlihan Lokey served as the exclusive financial advisor to Geminus Capital Partners. This transaction highlights Houlihan Lokey's continued position as the country's leading advisor to the warranty industry.