CURO Announces Closing of Sale of Former U.S. Direct Lending Business
WICHITA, Kan.–(BUSINESS WIRE)–CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), a technology-driven, omnichannel consumer finance company serving non-preferred and mainstream consumers in the United States and Canada, today announced that on July 8, 2022, it completed the sale of its Legacy US Direct Lending business to Community Choice Financial, a Dublin, Ohio-based consumer financial services company, for total cash consideration of $345 million. The consideration includes $310 million in cash paid at closing and $35 million payable over the next 12 months.
“We are pleased to announce the closing of the sale of our former US direct lending business to Community Choice,” said Don Gayhardt, CEO of CURO. “We thank the more than 1,700 employees in these operations for their work for CURO and are confident that Community Choice will be an excellent owner and operator of these businesses.
The company also announced that it expects to complete the previously announced acquisition of First Heritage Credit by July 15, 2022 on terms consistent with the May 19, 2022 transaction announcement.
More information about these transactions can be found in the “Events and Presentations” section of CURO’s Investors website at https://ir.curo.com/events-and-presentations.
Jefferies Inc. acted as sell-side financial advisor and King & Spalding LLP acted as legal advisor to CURO in connection with these transactions. Stephens Inc. served as financial advisor and Morrison Foerster served as legal advisor to Community Choice Financial. Stephens Inc. served as financial advisor and Butler Snow served as legal advisor to First Heritage Credit.
This press release contains forward-looking statements. These forward-looking statements include statements regarding projections, estimates and assumptions regarding the timing of the closing of the First Heritage Credit transaction and the release of second quarter 2022 financial results. In addition, words such as “confident”, ” will, “expects” and 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 contained in the forward-looking statements, including the parties’ inability to successfully or in a timely manner complete the First Heritage transaction due to, among other risks, the risk that required regulatory approvals will not be obtained, will be delayed, or will be subject to unforeseen conditions that could harm the Company or the expected benefits of the proposed transaction as well as other factors discussed in our filings with the Securities and Exchange Commission. These expectations and assumptions may prove to be incorrect in the future, are not guarantees of future performance, and involve known and unknown risks and uncertainties that are difficult to predict with respect to the timing, extent, likelihood and the degree of occurrence. There may be additional risks not currently known to us or that we currently believe are not material that could also cause actual results to differ from those contained in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements to predict actual future results. We undertake no obligation to update, change or clarify any forward-looking statement for any reason.
CURO Group Holdings Corp. (NYSE: CURO) meets the changing needs of the financial consumer. In 1997, the company was founded in Riverside, California by three childhood friends from Wichita, Kansas to meet consumers’ growing need for short-term loans. Their success led to the opening of stores 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 full-spectrum through the point-of-sale/buy-now-pay-later channel. CURO combines its market expertise with fully integrated technology platforms, an omnichannel approach and advanced credit decision-making to deliver a range of credit products across all mediums. CURO operates under several brands, including Cash Money®, LendDirect®, Flexiti®, Heights Finance®, Quick Credit®, Covington Credit®, Southern Finance®, FirstPhase®, Opt+® and Revolve Finance®. With over 20 years of operating experience, CURO provides financial freedom to unprivileged consumers.
About Premier Legacy Credit
Headquartered in Ridgeland, Mississippi, with offices and branches in Alabama, Louisiana, Mississippi, South Carolina and Tennessee, First Heritage Credit offers short and long-term personal loans designed to provide its customers with a convenient and reliable source. for extra money when they need it.
For more information, visit https://www.1stheritagecredit.com/.