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.