Stellantis to Buy First Investors Financial Services

Posted on 1 September 2021 by Ken Zino

Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) today announced it has entered into a definitive agreement to acquire F1 Holdings Corp., parent company to First Investors Financial Services Group1, an independent auto finance company in the United States of America. The all cash transaction for ~$285 million, subject to adjustments for closing balance sheet and certain outstanding options from an investor group led by Gallatin Point Capital LLC and including affiliates of Jacobs Asset Management, LLC. The Transaction is expected to close by the end of 2021, subject to customary closing conditions.

This is either an opportunity or survival necessity, depending on your viewpoint. It will allow Stellantis to provide customers and dealers a range of financing options, including retail loans, leases, and floorplan financing in the near term. A so-called “captive U.S. finance company”  can provide revenue and marketing incentives in the digital age for customers who purchase Jeep, Ram, Dodge, Chrysler, Fiat and Alfa Romeo vehicles.

“This transaction marks a significant milestone in Stellantis’ sales finance strategy in the critical U.S. market. First Investors has an outstanding financial and operational platform, underpinned by a strong management team, with vast experience in the auto finance space,” said Carlos Tavares, CEO of Stellantis. (Stellantis is an automaking conglomerate formed by the merger between Fiat Chrysler and PSA Group in January of this year: Stellantis Reports Legacy FCA, PSA 2020 Financial Results; Stellantis – a Mega Merger of Auto Companies Names Execs)

1About First Investors

The Company is an auto finance company engaged in originating and holding for investment automobile finance receivables and promissory notes originated by franchised automobile dealers or through refinancing transactions with the vehicle owners. The Company is headquartered in Houston, Texas and has been in business for more than 32 years.

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About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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One Response to Stellantis to Buy First Investors Financial Services

  1. Pingback: Floorplan – Stellantis Buys First Investors Financial Services | AutoInformed

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