Abu Dhabi Investment Authority (ADIA) has agreed to acquire a 30 per cent stake in Domestic & General Group, the UK appliance warranty provider owned by CVC Capital Partners, reported Bloomberg.

The deal with the Abu Dhabi’s sovereign wealth fund is expected to be announced in London this week.

CVC is opting for a deal with ADIA instead of an initial public offering (IPO) of the business due to market uncertainty and the transaction is expected to close by the end of the year.

Domestic & General has nine million customers in the UK and carries out 2.5 million appliance repairs yearly. The company generates about GBP 101 million of underlying earnings before interest, taxes as well as depreciation and amortisation, and it has an annual revenue of GBP 811 million.

CVC will transfer its remaining 70 per cent holding in the business to Fund VII, which it raised in 2017.

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