CURO to sell legacy US direct lending business for $345M, to acquire First Heritage for $140M

May 19, 2022 7:08 AM ETCURO Group Holdings Corp. (CURO)By: Ravikash, SA News Editor1 Comment

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CURO Group (NYSE:CURO) is selling its legacy U.S. Direct Lending business for $345M and acquiring First Heritage Credit for $140M.

CURO said it is selling its Legacy U.S. Direct Lending business to Dublin, Ohio-based Community Choice Financial , for $345M in cash, of which $35M will be paid over 12 months under a transition services agreement.

"In late 2021, we acquired Heights Finance, a leading near-prime installment lender, signifying our entry into this broader consumer lending market in the U.S.,” said CURO CEO Don Gayhardt.

"Continuing on that strategic shift, today we are announcing that we are selling our legacy storefronts and online businesses in the U.S., which operate under the Speedy Cash, Rapid Cash and Avio Credit brands," added Gayhardt.

In addition CURO is acquiring Ridgeland, Miss.-based First Heritage Credit, a consumer lender which provides near-prime installment loans and customary opt-in insurance, for $140M in cash.

"Together, these transactions completely transform our U.S. direct lending business to a near-prime installment lender offering larger loans," added Gayhardt.

The respective transactions were approved by boards of the three companies.

Both deals are expected to close in the next 45 days, subject to conditions, including regulatory approvals.

CURO +1.36% to $8.20 premarket May 19

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