American International Group (AIG) has agreed to sell 80% stake in its consumer finance arm American General Finance (AGF) to Fortress Investment Group.
Across the US, Puerto Rico, the Virgin Islands, and the UK, AGF provides loans, retail financing and other credit related products to more than a million families.
Fortress Investment Group co-chairman and founder Wesley Edens said that AGF is an exceptional franchise with a strong management team and a leading platform for serving the financing needs of consumers nationwide.
AIG president and CEO Robert Benmosche said that the transaction marks another important step in the company’s ongoing restructuring process as they seek to monetize non-core assets and pay back US taxpayers.
“In Fortress, we have found an excellent partner for this terrific franchise. We believe in AGF’s solid business model, which is why we are retaining a 20% percent stake in the business as part of this transaction,” Benmosche said.
Subject to regulatory approvals and customary closing conditions, the transaction is expected to close by the end of the first quarter of 2011.