CURO Group Holdings Corp. completed the acquisition of Heights Finance Corporation from Southern Management Corporation.
The acquisition's aggregate purchase price of $360 million represents 6.5x Heights Finance's 2022 estimated adjusted earnings before taxes of $55 million. For the 12 months ended September 30, 2021, Heights Finance had revenue of $235 million, net income of $22.634 million, total assets of $500.852 million, total stockholder's equity of $112.79 million, and EBITDA of $61.582 million. The transaction is subject to customary closing conditions, including licensing approvals and has been approved by CURO's Board of Directors and receipt of certain regulatory approvals and licenses. The transaction is expected to close no later than the first quarter of 2022. The acquisition is immediately accretive to CURO's earnings and the acquisition is expected to accelerate CURO's transition into longer-term, higher balance and lower rate credit products. Jefferies LLC served as exclusive financial advisor and Timothy M. Fesenmyer and William C. Smith III (Cal) of King & Spalding LLP served as legal counsel to CURO in this transaction. Bruce K. Fenton and Donald R. Readlinger of Troutman Pepper served as legal counsel to Heights Finance in this transaction.
CURO Group Holdings Corp. (NYSE:CURO) completed the acquisition of Heights Finance Corporation from Southern Management Corporation on December 27, 2021.