Angelo, Gordon & Co. Acquires Citi Roadside Assistance Business
NEW YORK, Oct. 12, 2006 -- Angelo, Gordon & Co. ("Angelo Gordon") announced today that the firm has acquired a business unit from Citi Cards, a member of Citigroup, consisting of United States Auto Club, Motoring Division, Inc. and Associates Auto Club Services, Inc. The holding company is named Drive America Holdings, Inc. ("Drive America"). Terms of the deal were not disclosed.
Drive America provides roadside assistance services to more than 15 million customers through a nationwide network of automobile service professionals. Drive America's premier clients include the top automotive manufacturers in the U.S. In addition, Drive America will continue to offer its services to Citi Cards customers through a marketing relationship.
"This acquisition is an exciting opportunity for our firm and for the customers of Drive America," said David Roberts, a Senior Managing Director of Angelo Gordon. "In the near future, we will be focused on a smooth transition of ownership and maintaining Drive America's superior service levels. Our long-range plans include operational improvements, including new technology and service enhancements, to continue to expand the business in a strategic fashion."
"I look forward to working with the professionals at Angelo Gordon and other members of our management team to ensure that Drive America continues to offer the superior service quality that the company is known for, as well as developing new ways to more efficiently serve our customers," said Thomas Boughton, President, Drive America.
About Angelo, Gordon & Co.
Angelo Gordon was founded in 1988 and currently has over 50 investment professionals managing approximately $10 billion in capital across multiple investment strategies. The New York-based long-term equity strategy group currently manages more than $800 million in existing and committed capital.
About Drive America
Drive America is headquartered in Irving, Texas, and is one of the leading providers of roadside assistance to both the wholesale and retail markets. Drive America has a 38-year history of operational excellence and unrelenting focus on customer satisfaction. Drive America has pioneered roadside innovations, such as criminal background checks, vendor-scoring models, digital dispatching, internet reporting and invoicing, and direct deposit payments to Service Providers. Moreover, Drive America is the only auto club provider of wholesale services in the United States to be certified by the International Organization of Standardization (ISO) 9001:2000.