Stellantis Strikes Deal with Auto Finance

By Staff Writer September 03, 2021

Stellantis announced it has entered into a definitive agreement to acquire F1 Holdings Corp., parent company to First Investors Financial Services Group, an independent U.S. auto finance company, in an all-cash transaction for approximately $285 million, subject to outstanding options from an investor group led by Gallatin Point Capital LLC and including affiliates of Jacobs Asset Management, LLC.

“This transaction marks a significant milestone in Stellantis’ sales finance strategy in the critical U.S. market,” said Carlos Tavares, CEO of Stellantis. “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 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.”

Stellantis’ strategic objective is to establish a U.S. captive finance company to support its sales and fully capitalize on its strong market position while creating long-term value for Stellantis shareholders. The acquisition of First Investors allows Stellantis to create a platform from which to grow a full-service captive finance organization. Stellantis is the only major OEM currently operating in the U.S. without a captive auto finance company.

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Last modified on Tuesday, 07 September 2021 17:46