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Kingsway Announces Warranty Company Acquisition
Kingsway Financial Services Inc. ("Kingsway" or the "Company") today announced it has closed on its acquisition of Professional Warranty Services Corporation ("PWSC"), a leading provider of home warranty products and administration services to homebuilders and homeowners across the United States.
PWSC, headquartered in Chantilly, Virginia, is a leading provider of new home warranty products and administration services to the largest tier of domestic residential construction firms in the U.S. For over twenty years, PWSC has addressed the needs of America's top builders through superior risk management, best-in-class customer care and dispute resolution services as well as exceptional sales and marketing tools. PWSC provides its homeowner and homebuilder customers a higher comfort level with home ownership, greater control over unforeseen long-term risk and real estate investments that retain value over time.
John T. Fitzgerald, Kingsway's President and Chief Operating Officer, stated, "As we discussed during our Investor Day presentation in November and reiterated during our Investor Update conference call in August, we have been actively seeking warranty company acquisitions. We are delighted to add PWSC to our growing portfolio of warranty companies. We think highly of Gale Sommers and the PWSC team and feel that, with Kingsway's resources and support, PWSC has attractive business prospects. We expect the transaction will be immediately accretive to our cash flow and adjusted operating income."
Fitzgerald continued, "We believe the warranty industry -- a large, growing and profitable, but fragmented industry -- presents tremendous opportunities for us to pursue acquisitions and initiatives to support our goal of creating shareholder value by compounding our book value per share by 15-20% annually over the long-term."
Gale Sommers, PWSC's President, stated, "We are proud of the business and team we have built at PWSC and appreciate that Kingsway has recognized our potential and is willing to support our efforts to grow our business. We look forward to joining the Kingsway family."