To provide its customers and dealers with a complete range of financing options, including retail loans, leases, and floorplan financing Stellantis has entered into a definitive agreement to acquire F1 Holdings Corp, parent company to First Investors Financial Services Group.
According to the OEM, the all-cash transaction deal for approximately $ 285 million is subject to adjustments for the closing balance sheet and certain outstanding options from an investor group led by Gallatin Point Capital and including affiliates of Jacobs Asset Management.
The Transaction is expected to close by the end of 2021, subject to customary closing conditions and regulatory approvals.
Stellantis is the only major OEM currently operating in the US without a captive auto finance company. The transaction represents a meaningful strategic opportunity, with significant potential for accretive earnings generation and improving customer loyalty. A captive US finance company will enhance the ownership experience and connectivity in the digital age for customers who purchase Jeep, Ram, Dodge, Chrysler, Fiat and Alfa Romeo vehicles and provide future opportunities to enable emerging business strategies.
Stellantis' strategic objective is to establish a US captive finance company to support its sales and fully capitalise on its strong market position while creating long-term value for its shareholders. The acquisition of First Investors allows the vehicle maker to create a platform from which to grow a full-service captive finance organisation.
Carlos Tavares, CEO, Stellantis, said this transaction marks a significant milestone in the company's sales finance strategy in the critical US market. First Investors has an outstanding financial and operational platform, underpinned by a strong management team with vast experience in the auto finance space. Direct ownership of a finance company in the US is a white-space opportunity that will allow Stellantis to provide its customers and dealers with a complete range of financing options, he added.