Personal finance firm Springleaf has reached a settlement with the US Department of Justice (DOJ) and the state Attorneys General of seven states to proceed with the acquisition of Citigroup’s OneMain Financial business.
The $4.25bn deal, which was first announced in March 2015, is expected to create the largest subprime lender in the US.
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As per the agreed terms with DOJ and state Attorneys General, Springleaf will sell 127 branches in 11 states to Lendmark Financial Services of Covington, Georgia.
The branches account for 6% of the company’s branches and 4% of its receivables, on a pro forma basis for the combined company as of 31 December 2014.
The sale to Lendmark is scheduled to close on or about 1 April 2016.
The combined entity will operate with about 1,850 branches across 43 states after sale of the branches to Lendmark. It will have significant presence in Evansville, Indiana and Baltimore, Maryland.
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By GlobalDataIt will also have key operations in Wilmington, Delaware; Chicago, Illinois; London, Kentucky; Mendota Heights, Minnesota; Tempe, Arizona; Fort Mill, South Carolina; Irving and Fort Worth, Texas, and Greenwich, Connecticut.
The combined company will be headed by Jay Levine, with the executive management team comprising leaders from Springleaf as well as OneMain.
The company will be rebranded as OneMain Holdings following completion of the acquisition.
Springleaf president and CEO Jay Levine said: “The transformational combination of Springleaf and OneMain will create the premier personal finance business in the United States, with branches across 43 states and 2.4 million customers. This will be a company that we believe is financially strong, committed to responsible lending and positioned for future growth.”
