Stellantis has agreed to acquire US-based car finance company F1 Holdings Corp, the parent company to First Investors Financial Services Group, for approximately $285m. The acquisition follows a profitable second quarter of 2020 for the company, with sales figures starting to bounce back post-pandemic. The transaction is expected to be completed the end of 2021, subject to closing conditions and regulatory approvals.

Carlos Tavares, the company’s chief executive, said: “This transaction marks a significant milestone in Stellantis’ sales finance strategy in the critical US market. First Investors has an outstanding financial and operational platform, underpinned by a strong management team, with vast experience in the auto finance space.

“Direct ownership of a finance company in the US is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options, including retail loans, leases, and floorplan financing in the near-to-medium term.”

Tommy Moore, president and chief executive of First Investors, added: “Becoming part of Stellantis provides long-term stability for our company and employees. We believe that there are significant untapped growth opportunities for First Investors under Stellantis ownership.”

“The First Investors management team is fully committed to ensuring a smooth and rapid integration into Stellantis. Meanwhile, we remain committed to continuing to offer our loans and services to our existing network of dealers and current business partners.”