Springleaf Merger Clears Major Hurdle
Evansville-based Springleaf Holdings Inc. (NYSE: LEAF) says it has reached a deal with the U.S. Department of Justice and attorneys general from seven states to move forward with a more than $4 billion acquisition. The merger with OneMain Financial Holdings LLC in Baltimore needed to clear the anti-trust process. The resulting business will be called OneMain Holdings Inc.
The deal still needs the approval of the U.S. District Court in Washington D.C. As part of the settlement, the company says it will sell 127 branches in 11 states to Georgia-based Lendmark Financial Services. That transaction is expected to be complete in April and represents 6 percent of Springleaf’s branches.
Springleaf expects the new company to begin being traded on the New York Stock Exchange November 27 under the symbol "OMF." OneMain is a unit of Citigroup Inc. (NYSE: C).
Springleaf says the combined operations will maintain a significant presence in Evansville and OneMain’s home city of Baltimore, as well as "key operations" in Delaware, Illinois, Kentucky, Minnesota, Arizona, South Carolina and Texas. When the acquisition was announced in March, Springleaf said the headquarters will be in Connecticut. In all, Springleaf anticipates the combined company to have core net income of between $830 million and $900 million. It will have more than 1,800 branches in 43 states after its assets are sold to Lendmark.
Chief Executive Officer Jay Levine, who will be CEO of OneMain Holdings, says "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. In addition, we share similar cultures and values, including excellence in customer service and a deep commitment to the local communities that we serve. We look forward to welcoming OneMain’s talented team members to the Springleaf family, and to creating even greater value for all stakeholders." OneMain’s leadership team will include executives from both companies.
Springleaf finished the trading day Friday up more than 11 percent.