Aquiline Capital Affiliate to Acquire First Investors Financial
First Investors Financial Services Group, Inc. (FIFS) announced that it has entered into a definitive merger agreement with FIFS Holdings Corp. (FIFS Holdings), a company controlled by Aquiline Capital Partners, a New York-based private equity firm investing in the financial services sector. Under the merger agreement, FIFS Holdings will acquire all of the outstanding shares of First Investors common stock in an all-cash transaction valuing First Investors at $100 million. Stockholders of First Investors will receive $13.87 for each share of First Investors common stock they hold.
“The acquisition by Aquiline is the result of a thorough and competitive process focused on maximizing value for our stockholders,” said Tommy A. Moore, Jr., president and CEO of the company. “Our board unanimously supports this transaction and believes that the acquisition will continue to expand the company’s leadership position in the market it serves. As a management team, we are very excited to be partnering with Aquiline, a firm with an outstanding reputation, valuable industry expertise and capital resources that will enhance our ability to grow our company.”
Jeff Greenberg, chief executive of Aquiline, stated, “We are excited to partner with Tommy Moore and his management team. They have an impeccable reputation and the track record at First Investors is outstanding throughout their 23-year history.”
On September 25, 2012, the company entered into a definitive merger agreement with FIFS Holdings and ACP (TX) Merger Sub, Inc., a wholly owned subsidiary of FIFS Holdings. The agreement contemplates the acquisition by FIFS Holdings of all of the issued and outstanding shares of capital stock of the company for $100 million.
Keefe, Bruyette & Woods and FalconBridge Capital Markets acted as financial advisers to First Investors, and KBW rendered a fairness opinion to the company’s board of directors in conjunction with this transaction. Thompson & Knight acted as legal advisor to First Investors. Willkie Farr & Gallagher acted as legal advisor and Macquarie Capital acted as financial adviser to Aquiline.
FIFS is a consumer finance company engaged in originating and holding for investment automobile finance receivables and promissory notes originated by franchised automobile dealers or through refinancing transactions with the vehicle owners.