Stellantis announced Wednesday it has entered into a definitive agreement to buy F1 Holdings Corp., parent company to First Investors Financial Services Group, an independent auto finance company in the US.
It will buy the company in an all cash transaction for approximately $285 million.
Carlos Tavares, the CEO of Stellantis, said: “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. Direct ownership of a finance company in the U.S. is a white-space opportunity that will enable 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.”
The automaker’s strategic objective is to establish a U.S. captive finance company to support its sales and wholly capitalize on its strong market position while forming long-term value for Stellantis shareholders.
Stellantis is the only major OEM presently operating in the U.S. without a captive auto finance company.
Tommy Moore, Jr., President, and CEO of First Investors, said: “We are excited to join the Stellantis team. Becoming part of Stellantis provides long-term stability for our company and employees. We believe that there are significant untapped growth opportunities for First Investors under Stellantis ownership as we expand our product suite to support the auto sales growth of Stellantis. The First Investors management team is fully committed to ensuring a smooth and rapid integration into Stellantis. Meanwhile, we remain committed to continuing to offer our loans and services to our existing network of dealers and present business partners.”
This transaction will close by the end of this year, subject to customary closing conditions and regulatory approvals.
