By Kimberly Chin

 

Automaker Stellantis NV agreed to buy U.S. auto finance firm First Investors Financial Services Group for about $285 million in an all-cash transaction, expanding the range of financing options it gives to customers and dealers.

The company will acquire F1 Holdings Corp., the parent company of First Investors, from an investor group led by private-equity firm Gallatin Point Capital LLC and includes affiliates of financial services-focused Jacobs Asset Management LLC.

Houston-based First Investors is a captive finance company that provides car loans to buyers who need financing.

Stellantis is the only original equipment manufacturer operating in the U.S. that doesn't have a captive auto finance company, it said.

The move will help support the company's sales in the region by offering customers and dealers an array of financing options, including retail loans, leases and floorplan financing, Stellantis said.

"This transaction marks a significant milestone in Stellantis' sales finance strategy in the critical U.S. market," Chief Executive Carlos Tavares said in prepared remarks.

Stellantis, which is behind the Jeep, Chrysler, Dodge and Alfa Romeo brands, expects to complete the deal by the end of the year.

 

Write to Kimberly Chin at kimberly.chin@wsj.com

 

(END) Dow Jones Newswires

September 01, 2021 19:01 ET (23:01 GMT)

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