CURO Group to acquire consumer finance firm Heights Finance for $360M

CURO Group Holdings Corp. agreed to acquire consumer finance firm Heights Finance Corp. from Milestone Partners Management Co. LP for $360 million.

The total consideration is comprised of $335 million in cash and $25 million of CURO common stock. The deal value represents 6.5x Heights Finance's 2022 estimated adjusted earnings before taxes of $55 million. The acquisition, which is expected to close no later than the first quarter of 2022, is immediately accretive to CURO's earnings.

CURO expects to fund the acquisition through a combination of existing cash and debt.

Heights Finance primarily serves near-prime and non-prime customers through a network of 390 branches across 11 Southern and Midwestern states, according to a news release. The deal is expected to accelerate CURO's transition into longer-term, higher-balance and lower-rate credit products. For the 12 months ended Sept. 30, Heights Finance had revenue of $235 million and adjusted pretax income of $34 million.

Jefferies LLC served as exclusive financial adviser, and King & Spalding LLP served as legal counsel, to CURO in the transaction. Troutman Pepper served as legal counsel to Heights Finance.