Onex Corp., Canada’s biggest buyout firm, agreed to sell the Warranty Group to an affiliate of TPG Capital in a deal valuing the company at $1.5 billion.

The deal value includes earnings Warranty Group produces from the end of last year through the closing, which is expected in the third quarter of 2014, Onex said today in a statement from Toronto.

Onex made a $498 million equity investment in Warranty Group in November 2006. Investors will have received proceeds of about $1.5 billion when the sale is completed, translating into an 18 percent rate of return, Onex said.

The Warranty Group provides extended warranty contracts for a variety of consumer goods, including automobiles, consumer electronics and  home appliances.

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