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AmeriCredit Corp. Announces Acquisition of Rancho Vista Mortgage Corporation

FORT WORTH, Texas, Nov. 25 /PRNewswire/ -- AmeriCredit Corp. (NYSE: ACF) today announced the acquisition of Rancho Vista Mortgage Corporation for a purchase price of 400,000 shares of AmeriCredit Corp. common stock.

Rancho Vista, a privately held company founded in November 1983, originates and acquires sub-prime home equity loans through a network of mortgage brokers in 17 states. The company operates six loan offices including its corporate office in Orange, Calif. and has 61 employees. Loan production totalled $19.6 million for the quarter ended Sept. 30, 1996. Rancho Vista has historically sold its home in equity loans and the related servicing rights to third party investors.

Clifton H. Morris, Jr., chairman and chief executive officer of AmeriCredit Corp., commented, "Our purchase of Rancho Vista provides us an entry into another line of sub-prime consumer finance with a market size approaching $100 billion. The sub-prime home equity industry knowledge and experience of Rancho Vista's management are an effective combination with AmeriCredit's risk management skills, automated systems and access to capital markets."

Rancho Vista will be operated as a wholly owned subsidiary of AmeriCredit Corp. Douglas E. McCracken will continue to serve as chief executive officer of Rancho Vista and Michael G. Hughes will remain as president.

AmeriCredit also announced a realignment of management duties at the parent company in connection with the acquisition. Michael R. Barrington has been named vice chairman and president of AmeriCredit Corp. with responsibility for the operations of the company's existing auto finance business and the new home equity business. Daniel E. Berce is now vice chairman and chief financial officer of AmeriCredit Corp. and Edward H. Esstman has become president of AmeriCredit Financial Services, Inc., the company's auto finance subsidiary.

AmeriCredit Corp. is a consumer finance company specializing in purchasing, securitizing and servicing automobile sales finance contracts and, through its newly acquired subsidiary, purchasing and selling home equity loans. The company operates 62 auto finance branch offices located in 26 states and now has six home equity lending offices.

SOURCE AmeriCredit Corp.
 -0- 11/25/96

/CONTACT: Beverly H. Mastran of AmeriCredit Corp., 817-882-7009/

(ACF) CO: AmeriCredit Corp.; Rancho Vista Mortgage Corporation ST: Texas IN: FIN SU: TNM

MW -- NYM117 -- 3836 11/25/96 14:25 EST
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Publication:PR Newswire
Date:Nov 25, 1996
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