Stellantis To Acquire US Auto Finance Company First Investors For $285M

Stellantis NV STLA has agreed to acquire First Investors Financial Services Group's parent company, F1 Holdings Corp, in an all-cash transaction for about $285 million.
Stellantis to acquire the auto finance company in the U.S. from an investor group led by Gallatin Point Capital LLC and including affiliates of Jacobs Asset Management, LLC.
The move is in line with Stellantis' intention of establishing a U.S. captive finance company to support its sales and fully capitalize on its market position.
With the direct ownership of a finance company in the U.S., Stellantis can provide customers and dealers financing options, including retail loans, leases, and floorplan financing in the near-to-medium term.
The transaction is expected to close by the end of 2021.
Stellantis held €40.8 billion in cash and equivalents as of June 30, 2021.
Price Action: STLA shares are trading higher by 0.20% at $20.09 in premarket on the last check Thursday.