Colonnade advises Harbert Management on its sale of Preferred Warranties to KAR Auction Services Inc.

Colonnade advises Harbert Management on its sale of Preferred Warranties to KAR Auction Services Inc.

June 2013

KAR Auction Services Inc. (NYSE:KAR), has acquired Preferred Warranties, Inc. (“Preferred Warranties”), a vehicle service contract company, from Harbert Private Equity Fund II, LLC, Northstar Mezzanine Partners IV L.P. and management.  Terms of the transaction were not disclosed.

Preferred Warranties 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 Preferred Warranties’ products will be enhanced as a result of being backed by KAR’s financial strength and stability.

Colonnade Securities served as the exclusive financial advisor to Harbert, Northstar and management of Preferred Warranties on this transaction.

About KAR Auction Services Inc.

KAR Auction Services Inc. is the holding company for ADESA, Inc. (“ADESA”), Insurance Auto Auctions, Inc. (“IAA”) and Automotive Finance Corporation.  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. Additional information about KAR Auction Services can be found at

About Harbert Management

Based in Birmingham, Alabama, HPEF II, LLC is a private equity fund sponsored by Harbert Management Corporation (“HMC”).  HMC is currently investing 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.

About Colonnade Securities

Colonnade Securities LLC is a registered broker/dealer focused on advising companies in the financial services and business services sectors on mergers, acquisitions, divestitures and capital raising. Additional information about Colonnade can be found