Parthenon Capital Partners, a Boston and San Francisco based private equity firm (“Parthenon”), and White River Capital, Inc. (NYSE MKT: RVR) (“White River”) today announced the closing of the transaction in which an affiliate of Parthenon will acquire White River and its wholly-owned subsidiary Coastal Credit, L.L.C. (“Coastal Credit”) in a merger transaction between the Parthenon affiliate and White River. Coastal Credit is a leading sub-prime auto finance company that acquires and services auto receivables originated at franchised and independent dealerships. One of Parthenon’s largest limited partners, OPTrust, will also invest in the transaction. Proceeds from the transaction will be used to provide liquidity to White River’s shareholders who held shares at the effective time of the merger. At a Special Meeting of Shareholders held on February 11, 2013, White River’s shareholders voted to approve the merger, the merger agreement for the transactions, and all transactions contemplated by the merger agreement.
Coastal Credit is led by President and CEO Bill McKnight, who developed the Company into one of the leading sub-prime auto finance businesses serving both the military and civilian markets in the U.S. Mr. McKnight stated, “We are very excited to partner with Parthenon given their knowledge of the auto finance industry combined with their track record of helping companies grow. We have developed a shared vision for Coastal’s continued growth and disciplined industry approach and have already begun to make significant progress towards our goals.”
Andrew Dodson, Partner at Parthenon, also remarked, “We are thrilled to partner with Bill and the rest of the Coastal team. Their 25-year history of producing growth and unparalleled underwriting results makes Coastal a unique company in the auto finance industry. Together with Bill and his team, we look forward to continuing this success and augmenting it through enhanced technology and dealer services, initiatives that we have already begun to implement.”