The private equity firm Parthenon Capital Partners has entered the auto finance sector with its $80 million acquisition of White River Capital Inc.
Parthenon will pay $21.93 for each share of White River Capital Inc., owner of subprime lender Coastal Credit LLC. The share price is not much off where the share has sat, around $20, for most of the year. Coastal Credit was founded in 1987 to provide used-car financing. Based in Virginia Beach, it now has a 27-state footprint comprised of 14 branch locations.
The purchase of the financial holding company is the second time in recent memory that a auto lender has been bought by a private equity firm.