Stellantis to buy U.S. auto finance provider First Investors for $285 million By Reuters

© Reuters. FILE PHOTO: A Stellantis sign is seen outside the company’s headquarters in Auburn Hills, Michigan, U.S., June 10, 2021. REUTERS/Rebecca Cook/File Photo

(Reuters) – Automaker Stellantis said on Wednesday it would acquire U.S. auto finance provider First Investors Financial Services Group for about $285 million in cash from an investor group led by Gallatin Point Capital LLC.

The company, formed from the merger of PSA and Fiat Chrysler, is the only major original equipment maker operating in the United States without a captive auto finance provider and the deal will allow it more flexibility to design consumer marketing programs.

“Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options, including retail loans, leases, and floorplan financing in the near-to-medium term,” chief executive officer Carlos Tavare said.

The deal with Texas-based First Investors is expected to close by the end of 2021.

BofA Securities served as the exclusive financial adviser to Stellantis, while Ardea Partners LP served as the exclusive financial adviser to Gallatin Point.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button