CURO Completes Acquisition of Heights Finance | Nation / World
WICHITA, Kan. – (BUSINESS WIRE) – December 28, 2021–
CURO Group Holdings Corp. (NYSE: CURO) (“CURO”), a technology-based, omnichannel consumer finance company serving unprivileged and privileged consumers in the United States and Canada, today announced that it has completed its previously announced acquisition of Heights Finance, a consumer finance company that offers installment loans and offers usual optional insurance and other financial products, of Milestone Partners, a private equity firm. Total consideration of $ 360 million includes $ 335 million in cash and $ 25 million of CURO common stock.
“The closing of this acquisition represents a key strategic milestone for CURO and we look forward to capitalizing on the significant growth opportunities Heights Finance brings to our business,” said Don Gayhardt, CEO of CURO. “Acquisition accelerates CURO’s strategic shift in the United States to longer term, higher balance, lower rate credit products, providing the company with access to a larger addressable market.” while mitigating regulatory risk.
As previously announced, the transaction should be immediately accretive to CURO’s earnings. The acquisition’s aggregate purchase price of $ 360 million represents 6.5 times Heights Finance’s estimated 2022 adjusted pre-tax profit of $ 55 million.
CURO’s management team plans to discuss its quarterly and annual results and business outlook during its fourth quarter 2021 results conference call, scheduled for January 2022.
CURO Group Holdings Corp. (NYSE: CURO) addresses the changing needs of the financial consumer. In 1997, the company was founded in Riverside, Calif., By three childhood friends from Wichita, Kansas, to meet growing consumer needs for short-term loans. Their success led to stores opening across the United States, later expanding to offer online loans and financial services in the United States and Canada and now expanding into a consumer lender. broad-spectrum via point of sale / buy now-pay. channel later. CURO combines its market expertise with fully integrated technology platforms, an omnichannel approach and advanced credit decisions to deliver a range of credit products across all media. CURO operates under several brands, including Speedy Cash®, Rapid Cash®, Cash Money®, LendDirect®, Flexiti®, Avío Credit®, Opt + ® and Revolve Finance®. With over 20 years of operating experience, CURO offers financial freedom to unprivileged consumers.
About Heights Finance
Headquartered in Greenville, South Carolina, with offices and branches in the states of Alabama, Georgia, Texas, Oklahoma, South Carolina, Wisconsin, Illinois, Missouri , Indiana, Kentucky, and Tennessee, Heights Finance offers short and long-term personal loans designed to help hardworking Americans get the cash they need fast. The company is proud to be a member of the American Financial Services Association (AFSA) and currently has a Trustpilot Customer Rating of 4.9.
This press release contains forward-looking statements. These forward-looking statements include statements regarding projections, estimates and assumptions regarding the impact of the transaction on us, including our belief that the acquisition will allow us to capitalize on growth opportunities, accelerate our transition to a longer term credit, a higher balance and a lower credit rate. products, provide access to a larger addressable market while mitigating regulatory risk and immediately increase our profits. In addition, words such as “direction”, “estimate”, “anticipate”, “believe”, “anticipate”, “step”, “plan”, “predict”, “focused”, “project”, “is likely , “” Expect “,” intend “,” should “,” will “,” confident “, variations of these words and similar expressions are intended to identify forward-looking statements. The ability to make these forward-looking statements is based on certain assumptions, judgments and other factors, both within our control and beyond our control, that could cause actual results to differ materially from those of forward-looking statements, including ‘inability to realize the expected benefits of the acquisition; risks related to the uncertainty of forecast financial information; the effects of competition on the future operations of the combined company; our ability to attract and retain customers; market, financial, political and legal conditions; the impact of the COVID-19 pandemic or any other global event on the operations of the combined society and the global economy; our dependence on third-party lenders to provide the liquidity we need to fund our loans and our ability to access third-party financing at an affordable price; errors in our internal forecasts; our level of debt; our ability to integrate acquired businesses; the actions of regulators and the negative impact of these actions on our activities; our ability to protect our proprietary technology and analytics and to track those of our competitors; a disruption to our computer systems that adversely affects our business operations; inefficient pricing of the credit risk of our potential or existing customers; inaccurate information provided by clients or third parties which could lead to errors in the assessment of clients’ qualifications to receive loans; inappropriate disclosure of customer personal data; the failure of third parties who provide us with products, services or support; any default by third party lenders on whom we rely to do business in certain states; the disruption of our relationships with banks and other third party electronic payment solution providers as well as other factors discussed in our filings with the Securities and Exchange Commission. These projections, estimates and assumptions may prove to be inaccurate in the future. These forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which are difficult to predict as to the timing, extent, likelihood and degree of occurrence. There may be additional risks that are not currently known to us or that we currently believe are negligible and which could also cause actual results to differ from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. We assume no obligation to update, modify or clarify any forward-looking statement for any reason.
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CONTACT: Investor Relations:
Executive Vice President and Chief Financial Officer
Email: [email protected] Or
Financial Profiles, Inc.
KEYWORD: UNITED STATES NORTH AMERICA KANSAS SOUTH CAROLINA
INDUSTRY KEYWORD: FINANCING OF PROFESSIONAL SERVICES
SOURCE: CURO Group Holdings Corp.
Copyright Business Wire 2021.
PUB: 12/28/2021 4:05 PM / DISC: 12/28/2021 4:06 PM
Copyright Business Wire 2021.