SARASOTA, Fla. — In a move that expanded its role in the buy-here pay-here industry, CarBiz Inc. announced that it acquired the Star Financial Services portfolio of consumer notes.
The acquisition will add more than $10 million to CarBiz's consumer loans portfolio. CarBiz financed the transaction by entering into a $20 million credit facility with Wells Fargo Preferred Capital.
Emphasizing the acquisition's impact to the company's growth, CarBiz CEO Carl Ritter stated, "The addition of this portfolio will augment our current collection team in Sarasota and the new credit facility with Wells Fargo should provide CarBiz with a stable financial platform to move forward this year."
Since 1966, Star Financial has served as an indirect lender to the auto finance industry in Southern California.
Full details of the acquisition and financing are available in the 8-K of CarBiz that was filed on June 17, 2009.