FORT WORTH, Texas--(BUSINESS WIRE)--Dec. 4, 2006--AmeriCredit
Corp. (NYSE:ACF) today announced a definitive agreement for its
operating subsidiary, AmeriCredit Financial Services, Inc., to acquire
all of the outstanding capital stock of Long Beach Acceptance Corp.
(LBAC). LBAC is the auto finance subsidiary of ACC Capital Holdings.
The acquisition is an all-cash transaction that values LBAC at $282.5
Long Beach Acceptance Corp. provides automobile financing to
customers with near-prime credit scores by acquiring retail
installment contracts from auto dealers in 34 states. As of Sept. 30,
2006, it had approximately $1.7 billion in managed auto receivables.
The Company was founded in 1995 and is headquartered 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," says AmeriCredit President and Chief Executive
Officer Dan Berce. "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
Long Beach Acceptance Corp. will operate as a standalone
subsidiary of AmeriCredit and will continue to be led by its President
and Chief Executive Officer, Stephen Prough.
"We are very pleased to be joining a well-capitalized and growing
company like AmeriCredit. Like Long Beach, AmeriCredit is solely
focused on auto finance, and we look forward to working with them to
deliver a full spectrum of financing solutions to auto dealers and
their customers," Prough says.
The acquisition of Long Beach Acceptance Corp. is part of
AmeriCredit's plan to grow the Company, build franchise value and
further utilize excess capital in ways that are complementary and
supportive of the Company's core business.
The AmeriCredit Corp. Board of Directors has approved the
transaction, which is expected to close during the first quarter of
calendar year 2007 (subject to customary closing conditions).
Throughout the acquisition process, Wachovia Securities served as
exclusive financial advisor to AmeriCredit.
Except for the historical information contained herein, the
matters discussed in this news release include forward-looking
statements that involve risks and uncertainties detailed from time to
time in the Company's filings and reports with the Securities and
Exchange Commission including the Company's annual report on Form 10-K
for the period ended June 30, 2006. Such risks include - but are not
limited to - variable economic conditions, adverse portfolio
performance, volatile wholesale values, reliance on warehouse
financing and capital markets, the ability to continue to securitize
its loan portfolio, the continued availability of credit enhancement
for its securitization transactions on acceptable terms, fluctuating
interest rates, increased competition, the Company's ability to
integrate operational and strategic platforms, regulatory changes and
exposure to litigation. These forward-looking statements are based on
the beliefs of the Company's management as well as assumptions made by
and information currently available to Company management. Actual
events or results may differ materially.
AmeriCredit Corp. is a leading independent automobile finance
company that provides financing solutions indirectly through auto
dealers and directly to consumers in the United States and Canada.
AmeriCredit has approximately one million customers and $12 billion in
managed auto receivables. The Company was founded in 1992 and is
headquartered in Fort Worth, Texas. For more information, visit
CONTACT: AmeriCredit Corp., Fort Worth
Caitlin DeYoung, 817-302-7394
John Hoffmann, 817-302-7627
SOURCE: AmeriCredit Corp.