FIRSTPLUS Financial announces proposed acquisition of The Modern Finance Company.DALLAS--(BUSINESS WIRE)--April 9, 1997--FIRSTPLUS Financial Group, Inc. (Nasdaq: FPFG FPFG First Premier Financial Group Inc. ) today announced that it has executed a definitive agreement to acquire The Modern Finance Company (Modern Finance) in a tax-free exchange tax-free exchange
An exchange of assets between taxpayers in which any gain or loss is not recognized in the period during which the exchange takes place. Rather, taxpayers are required to adjust the basis of assets exchanged. of stock.
Under the terms of the agreement, FIRSTPLUS Financial will issue common stock in exchange for all of the outstanding shares of Modern Finance. The transaction will be accounted for as a pooling of interests Pooling of Interests
An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together.
The opposite of pooling of interests is the purchase acquisition method. .
The Modern Finance Company, based in Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. , was founded in 1924 and is in its third generation of management. It is an originator of small consumer finance loans, retail installment contracts, and second-lien equity loans. At December 31, 1996, Modern Finance had total assets of $27.3 million. The Company's net earnings from continuing operations continuing operations
Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the twelve months ended December 31, 1996 totaled $738 thousand. Modern Finance operates from seven branches located throughout central Ohio as well as a centralized processing center located in its home office building.
Daniel T. Phillips, FIRSTPLUS Financial's Chief Executive Officer, commented, "Ohio has a very large market for consumer finance and a significant amount of the population could be either a potential FIRSTPLUS consumer finance or real estate customer. We believe that with seven offices near Columbus, and expansion plans for other major markets in Ohio and neighboring states, The Modern Finance Company provides us with tremendous access to this customer base."
Earl W. Osborne, President of The Modern Finance Company, said, "We are very excited to be working with FIRSTPLUS Financial. We anticipate operational benefits inherent in the talented management team at FIRSTPLUS, their cutting-edge technology and excellent marketing approach."
Chuck Owens, President of FIRSTPLUS's consumer finance division, added, "Earl and his team have excellent experience in the consumer finance market. The current Modern Finance management and employees will remain in place and we will quickly expand their responsibilities to include originating our high LTV LTV
See: Loan-to-value ratio core product as well as growing the traditional Modern Finance consumer loan business."
FIRSTPLUS Financial Group, formerly RAC See remote access concentrator. Financial Group, is a specialized consumer finance company that, through its subsidiaries, originates, purchases, services and securitizes consumer finance receivables, primarily home improvement loans, all secured by liens on the borrower's home. FIRSTPLUS, headquartered in Dallas, has regional offices in Denver, Colorado; Holly Springs, Mississippi Holly Springs is a city in Marshall County, Mississippi, United States. The population was 7,957 at the 2000 census. It is the county seat of Marshall CountyGR6. and Columbia, South Carolina Columbia is the state capital and largest city of South Carolina. As of 2006, estimates for the population of the city proper is 122,819. Columbia is the county seat of Richland County, but a small portion of the city extends into Lexington County. , and a network of origination branches nationwide.
CONTACT: RAC Financial Group, Inc.
Daniel T. Phillips
Eric C. Green
Michele Katz/Geoffrey Buscher/Jason Langer
Press: Brian Maddox/Estelle Bieber