Fort Worth, Texas—AmeriCredit Corp. has announced a definitive agreement for its operating subsidiary, AmeriCredit Financial Services Inc., to acquire all of the outstanding capital stock of Long Beach Acceptance Corp. (LBAC). LBAC is the auto finance subsidiary of ACC Capital Holdings. The acquisition is an all-cash transaction that values LBAC at $282.5 million.
As of Sept. 30, 2006, Long Beach Acceptance Corp. had approximately $1.7 billion in managed auto receivables.
“With Long Beach’s expertise in the near-prime market, combined with AmeriCredit’s experience in the subprime market and our Bay View Acceptance prime lending product, we now have the ability to serve customers at any point along the credit spectrum,” said AmeriCredit president and CEO Dan Berce.
Long Beach Acceptance Corp. will operate as a stand-alone subsidiary of AmeriCredit and will continue to be led by its president and CEO, Stephen Prough.
The acquisition of Long Beach Acceptance Corp. is part of AmeriCredit’s plan to expand the company, build franchise value and further utilize excess capital in ways that are complementary and supportive of the company’s core business.
The AmeriCredit Corp. Board of Directors has approved the transaction, which is expected to close during the first quarter of 2007.