(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.
(Reporting by Shreyasee Raj; Editing by Amy Caren Daniel)
