The deal, which is slated to close in the third quarter of 2014, includes operating units including Virginia Surety Company, London General Insurance Company and Resource Automotive.
The firm acquired TWG in 2006 in a $710m deal that included $510m of equity.
TPG managing director Eric Leathers said, “As the worldwide leader in full service underwriting and administration of extended warranties, and with its unique business model, The Warranty Group is well positioned to take advantage of current and future market trends.
“Tom and his team have done a great job building the business, and we believe with our additional capital, operational expertise and global relationships, we can accelerate the company’s growth.”
Onex was said to be eyeing more than $1bn through a sale of TWG last September, after reports emerged it had hired Goldman Sachs, Morgan Stanley and Citigroup to find a buyer.
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