DETROIT — General Motors’ acquisition of AmeriCredit Corp. was expected to close on Friday, three days after AmeriCredit’s stockholders approved the sale. The company will be renamed General Motors Financial Company Inc. (GM Financial).
The acquisition will form the foundation of the company’s plan to create an in-house financing arm and allow GM to provide consumers more vehicle financing options across the U.S. and Canada. GM Financial will work closely with GM dealers to expand financing and leasing options, including a new regional lease program to be launched by the end of the first quarter of 2011.
“This acquisition allows GM to offer an enhanced range of solutions for our customers and dealers, and establishes an important strategic capability for GM,” said GM Vice Chairman and Chief Financial Officer Chris Liddell. “The speed by which this transaction occurred is evidence of how we are running GM today. We identified an opportunity and moved quickly to provide solutions for customers and dealers.”
The all-cash transaction is valued at approximately $3.5 billion. The company was expected to file a Certificate of Merger with the Texas Secretary of State on Sept. 30, making the merger effective on Oct. 1.
“While the name is changing, our commitment to our customers and dealers remains paramount,” said GM Financial President and CEO Dan Berce. “We are excited to become a member of the GM family and look forward to the new opportunities this provides us.”
The establishment of GM Financial will provide strategic capabilities to offer consumers a range of additional financing and lease options. Key partners, in particular Ally Financial, will continue to provide essential financing services, including dealer financing and prime retail financing.
With total assets of approximately $10 billion, the acquisition poses minimal impact to GM’s balance sheet, said GM officials. They added that the acquisition will not change GM’s objective of achieving strong investment grade status.
GM Financial will maintain direct access to capital markets for its funding requirements. GM Financial results also will be reported as a separate segment within GM’s consolidated financial results and will continue to report its results as a separate SEC registrant.