Stellantis Completes Acquisition of First Investors Financial Services
The Jeep SUV and Ram pickup maker will be able to provide its customers and dealers with a full range of financing options, including retail loans, leases and off-plan financing after completing the acquisition of an auto finance company Monday.
Stellantis NV has purchased F1 Holdings Corp., parent company of Texas-based First Investors Financial Services Group, from a group of investors led by Gallatin Point Capital LLC in a $ 285 million all-cash transaction. The purchase makes Stellantis no longer the only major automaker in the United States without a captive financial arm. First Investors was renamed Stellantis Financial Services US Corp.
“The acquisition of First Investors supports Stellantis’ plan to grow the business in the United States,” said Richard Palmer, chief financial officer of Stellantis, in a statement. “This is a key strategic decision to further extend our financial performance and create long-term value for Stellantis shareholders. “
The former management team of First Investors with an average tenure of 18 years in the financial sector is expected to remain in place.
“Improving the customer experience is at the heart of our mission,” said Tommy Moore Jr., CEO of Stellantis Financial Services US Corp. in a press release. “Going forward, we will leverage strong business activity in the United States to provide financing to the full range of customers while seeking new emerging growth strategies, including mobility services, to expand our portfolio beyond the sale of traditional vehicles. “
It has 400 employees in Texas and Georgia, but was slated to open a presence in Auburn Hills, Moore said in September when the deal was announced. He declined to disclose the company’s annual turnover at the time, but said the company had been profitable for its 32 years.
Prior to Monday’s acquisition, there was only Chrysler Capital, the financial services operation that Santander Consumer USA Holdings Inc. and Chrysler Group LLC formed in 2013 before the US automaker finalized its merger with Fiat SpA. in 2014. The contract with Santander expires in April. 2023.