Wednesday, Jan. 03, 2007, 07:00 PM UPDATED 11:59 AMBy Nick Zulovich
FORT WORTH, Texas — AmeriCredit recently announced that its subsidiary, AmeriCredit Financial Services, has completed its purchase of Long Beach Acceptance Corp., the near-prime auto finance subsidiary of ACC Capital Holdings.
AmeriCredit Financial Services said it has acquired all outstanding capital stock of Long Beach. The purchase is an all-cash transaction valued at $282.5 million.
According to executives, Long Beach specializes in providing auto financing to customers with near-prime credit scores by acquiring contracts from dealers in 34 states. As of Sept. 30, the company had about $1.7 billion in managed auto receivables.
"Long Beach Acceptance Corp. is a successful company with a strong position as an indirect lender of near-prime loans, and we are very happy to have it as part of the AmeriCredit product mix now," said Dan Berce, AmeriCredit's president and chief executive officer.
"With the completion of this acquisition — and our acquisition of Bay View Acceptance last year — we are now a full-spectrum auto finance company that is building relationships with and creating solutions for auto dealers and consumers across North America," he added.
Long Beach was founded in 1995 and has its headquarters in Paramus, N.J., with a Western regional office in Orange, Calif.
"AmeriCredit is committed to offering auto dealers and consumers a full spectrum of auto finance solutions, and the acquisition of Long Beach Acceptance Corp. allows us to add near-prime quality business to our product mix," explained Berce when the acquisition was still ongoing.
"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," he continued.