stellantis acquired for approximately $285 million First Investors Financial Services Group, a US company that provides car loans. The goal of the giant born from the merger of FCA and PSA is "to create its own financial company in the United States to support sales and fully capitalize on its market position - reads the group's note - while creating value for its shareholders in the long term”.
The acquisition of First Investors will allow Stellantis to "create a platform from which to grow a financial organization capable of offering a complete range of products and services for its customers - continues the note - Stellantis is the only major OEM that currently operates in the United States without a proprietary finance company. The transaction represents an important strategic opportunity, with significant potential for increased profits and customer retention".
Secondo Carlos Tavares, CEO of Stellantis, “this transaction marks a milestone in the group's sales financing strategy in a strategic market such as the United States. The ownership of a financial company in the United States is an opportunity that will allow Stellantis to develop in the short to medium term a complete range of financial products for customers and dealers, including retail loans and leasing and network financing”.
The transaction, paid for by Stellantis in cash, is expected to close by the end of 2021, following the normal regulatory approval process.
“We believe that under the new ownership, there is significant growth opportunity for First Investors as we expand our product offerings to support Stellantis' auto sales growth,” said Tommy Moore, Jr, president and CEO of First Investors.
BofA Securities acted as sole financial advisor and Sullivan & Cromwell LLP acted as legal advisor to Stellantis. Ardea Partners acted as sole financial adviser and Goodwin Procter LLP acted as legal adviser to Gallatin Point and the firm.
