CURO completes acquisition of Heights Finance
WICHITA, Kan., December 28, 2021– (BUSINESS WIRE) – CURO Group Holdings Corp. (NYSE: CURO) (“CURO”), a technology-driven omni-channel consumer finance company serving non-prime and prime consumers in the US and Canada, announced today that it has previously announced the acquisition of Heights Finance, a consumer finance company , which offers installment loans and standard opt-in insurance and other financial products, from Milestone Partners, a private equity firm. The total purchase price of $ 360 million includes $ 335 million in cash and $ 25 million in common stock of CURO.
“The completion of this acquisition marks an important strategic milestone for CURO and we look forward to capitalizing on the significant growth opportunities that Heights Finance offers our business,” said Don Gayhardt, CEO of CURO. “The acquisition accelerates CURO’s strategic transition in the US to longer-term credit products with higher balance sheets and lower interest rates that give the company access to a larger addressable market while reducing regulatory risk.”
As previously announced, the transaction is expected to have an immediate positive impact on CURO’s earnings. The total purchase price of the acquisition of $ 360 million is 6.5 times Heights Finance’s estimated adjusted profit before tax for 2022 of $ 55 million.
The CURO management team plans to discuss its quarterly, full-year and business outlook during its fourth quarter 2021 results conference call, which is scheduled for January 2022.
The CURO Group Holdings Corp. (NYSE: CURO) serves the changing needs of financial consumers. The company was founded in Riverside, California in 1997 by three childhood friends from Wichita, Kansas to meet growing consumer needs for short-term credit. Its success resulted in the opening of stores in the United States, later expanding to include online credit and financial services in the United States and Canada, and now becoming a full-spectrum consumer lender through point-of-sale / buy-now -Pay- later channel. CURO combines its market expertise with fully integrated technology platforms, an omni-channel approach and advanced credit decisions to offer a range of credit products across all media. CURO operates under a number of 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 non-prime customers financial freedom.
About Heights Finance
Based in Greenville, SC, with offices and offices 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 to hardworking Americans to help get the money they need quickly. The company is a proud 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 contain statements regarding projections, estimates and assumptions about the impact of the transaction on us, including our belief that the acquisition will enable us to capitalize on growth opportunities, accelerate our transition to longer-term, higher balance sheet and lower lending products, offer access to a larger addressable market, while at the same time reducing regulatory risks and increasing our earnings immediately. In addition, words such as “guidance”, “estimate”, “anticipate”, “believe”, “forecast”, “step”, “plan”, “predict”, “focused”, “project” “likely”, “” expect “,” intend, “” should, “” become, “” confident “, variations of such 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 and beyond our control, that could cause actual results to differ materially from those in the forward-looking statements, including failure to meet those anticipated Benefit of acquisition; Risks related to the uncertainty in the forecast financial information; the impact of competition on the future business of the combined company; our ability to acquire and retain customers; Market, financial, political and legal framework conditions; the impact of a COVID-19 pandemic or other global event on the combined company’s business and the global economy; our reliance on outside lenders to provide the cash needed to fund our loans and our ability to access affordable third party financing; Errors in our internal forecasts; our indebtedness; our ability to integrate acquired businesses; Actions taken by regulators and the negative impact these actions have on our business; our ability to protect our proprietary technology and analytics and to keep up with those of our competitors; Disruption to our information technology systems that adversely affects our business operations; ineffective assessment of the credit risk of our potential or existing customers; inaccurate information from customers or third parties that could lead to errors in assessing the creditworthiness of customers; improper disclosure of personal customer data; Failure of third parties to provide products, services or support to us; any failure of third party lenders on whom we rely to do business in certain states; Interruption of our relationships with banks and other third party electronic payment solution providers; and other factors discussed in our filings with the Securities and Exchange Commission. These forecasts, 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 that are difficult to predict with regard to the timing, extent, probability and degree of occurrence. There may be additional risks that we are not currently aware of or that we currently consider to be immaterial and which could also mean that the actual results differ from those contained in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictions of actual future results. We do not assume any obligation to update, supplement or clarify any forward-looking statements for any reason.
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Executive Vice President and Chief Financial Officer
Email: [email protected]
Financial Profiles, Inc.