Trivest, which specializes in family-owned businesses, disclosed the merger plan in a Sept. 13 statement announcing the purchase of the Family First stake.
The merger will create a single company with a more complete menu of F&I products, Tony Wanderon, founder and president of Family First, told Automotive News in a phone interview last week. "In the big picture, what we were missing was service contracts," he said, adding: "Dealerships nowadays prefer a provider that offers more of a complete menu."
Family First, of Ponte Vedra Beach, Fla., was launched in 2011. Its main offerings have been guaranteed asset protection and trade-in protection, a product that covers negative equity on a vehicle when it is traded in. The company added tire-and-wheel coverage and other F&I products this year, but it didn't offer extended service contracts.
NAC, of Westerville, Ohio, offers extended service contracts as well as dealership software programs and services. It was founded in 1984 as National Auto Care.
Wanderon will stay on as CEO of the combined company, and Christina Schrank will remain president of NAC. The merger is expected to take effect within 45 days of the Sept. 13 announcement, the companies said.
Currently, the companies together produce in excess of 20,000 contracts a month for more than 1,000 mostly franchised dealerships nationwide, Wanderon says.
Troy Templeton, Trivest managing partner, said both F&I companies will keep their names initially. “Based on customer feedback, we will look to integrate our brand strategy in 2014,” he told Automotive News last week in an e-mail.
Troy Templeton, Trivest managing partner, said both F&I companies will keep their names initially. "Based on customer feedback, we will look to integrate our brand strategy in 2014," he told Automotive News last week in an e-mail.
Family First is the second F&I administrator Trivest has bought into. NAC was the first, in December 2012.
Wanderon and Templeton both said the merged company will look to make more acquisitions in the dealership F&I space.
Said Templeton: "We are very focused on finding complementary acquisitions."