Bay View Capital Corporation Announces Agreement to Sell Bay View Acceptance Corporation
07 November 2005 - 10:03PM
PR Newswire (US)
SAN MATEO, Calif., Nov. 7 /PRNewswire-FirstCall/ -- Bay View
Capital Corporation ("Bay View") today announced it has signed a
definitive agreement whereby a subsidiary of AmeriCredit Corp.
(NYSE:ACF) will purchase all of the outstanding capital stock of
Bay View Acceptance Corporation ("BVAC") in an all-cash transaction
for approximately $62.5 million, the approximate book value of BVAC
as of June 30, 2005. The sale of BVAC to AmeriCredit is expected to
close in the first half of 2006, subject to approval of the sale by
stockholders of Bay View and customary government approvals.
AmeriCredit is a leading independent auto finance company that
operates throughout the United States. AmeriCredit utilizes its
branch network and strategic alliances with auto groups and banks
to purchase retail installment contracts entered into by auto
dealers with customers who are typically unable to obtain auto
financing from traditional sources. AmeriCredit has approximately
one million customers and $11 billion in managed auto receivables.
BVAC purchases retail auto installment contracts from auto dealers
in 32 states. BVAC offers specialized products, including extended
term financing and larger advances, to customers with prime credit
scores. BVAC services approximately 37,000 auto contracts with an
aggregate outstanding balance of $744 million. "The sale of BVAC,
along with Bay View's previously announced merger agreement with
Great Lakes Bancorp, Inc. is reflective of our announced strategy
to maximize the value of BVAC and merge with a strong community
bank," said Charles G. Cooper, President and Chief Executive
Officer of Bay View. "We are also pleased with what this
transaction will mean for our customers and our employees.
AmeriCredit is an outstanding auto finance company, and we have
great confidence in placing BVAC in their very capable hands."
"This acquisition provides us with an additional growth platform
for the future and allows us to diversify our portfolio by adding
some prime quality business," says Dan Berce, President and Chief
Executive Officer of AmeriCredit Corp. "Bay View is a strong niche
marketer that offers unique products at premium prices to borrowers
with excellent credit." UBS Securities LLC acted as financial
advisor to the Board of Directors of Bay View in connection with
this transaction. Not a Proxy Statement This press release is not a
proxy statement or a solicitation of proxies from the holders of
common stock of Bay View Capital Corporation. Any solicitation of
proxies will be made only by a proxy statement that will be mailed
to Bay View stockholders. Investors and security holders of Bay
View are urged to read the proxy statement as soon as practicable
of Bay View Capital Corporation and the relevant materials when
they become available, because they will contain important
information about Bay View and the sale of BVAC to AmeriCredit. The
proxy statement and other relevant materials (when they become
available) may be obtained free of charge at the SEC's web site at
http://www.sec.gov/. Forward Looking Statements This press release
contains "forward looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
include, but are not limited to, statements concerning future
revenues and earnings, uncertainties and other factors that could
cause actual results to differ materially from the results
expressed or implied by such statements, the likelihood that Bay
View Capital Corporation can utilize its net operating loss
carry-forwards and other factors disclosed in Bay View Capital
Corporation's periodic reports filed with the Securities and
Exchange Commission. Bay View Capital Corporation assumes no
obligation to update the forward looking information contained in
this release. DATASOURCE: Bay View Capital Corporation CONTACT:
John Okubo of Bay View Capital Corporation, +1-650-294-7778 Web
site: http://www.bayviewcapital.com/
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