Benzinga | Sep 2, 2021 08:10AM EDT

Stellantis To Acquire US Auto Finance Company First Investors For $285M

* Stellantis NV (NYSE:STLA) has agreed to acquire First Investors Financial Services Group's parent company, F1 Holdings Corp, in an all-cash transaction for about $285 million.

* Stellantis to acquire the auto finance company in the U.S. from an investor group led by Gallatin Point Capital LLC and including affiliates of Jacobs Asset Management, LLC.

* The move is in line with Stellantis' intention of establishing a U.S. captive finance company to support its sales and fully capitalize on its market position.

* With the direct ownership of a finance company in the U.S., Stellantis can provide customers and dealers financing options, including retail loans, leases, and floorplan financing in the near-to-medium term.

* The transaction is expected to close by the end of 2021.

* Stellantis held (euro)40.8 billion in cash and equivalents as of June 30, 2021.

* Price Action: STLA shares are trading higher by 0.20% at $20.09 in premarket on the last check Thursday.