Southfield Capital Selling Dealers’ Financial Services

Southfield Capital Advisors has agreed to sell Dealers’ Financial Services to Dollar Financial Corp. (Nasdaq: DLLR), for approximately $118 million in cash. Dealers’ Financial is a Lexington, Ky.-based provider of services to enlisted junior military personnel seeking to purchase new and low mileage automobiles. It was acquired by Southfield Capital in November 2006.


Southfield Capital Advisors, a private investment firm focused on the lower middle-market, announced yesterday that it entered into an agreement to sell Dealers’ Financial Services, LLC, “DFS”, to Dollar Financial Corp (NASDAQ:DLLR), “Dollar”, for a cash purchase price of approximately $118 million.

Through its flagship Military Installment Loan and Educational Services (“MILES”) program, DFS offers a range of services to enlisted junior military personnel seeking to purchase new and low mileage automobiles, including automotive purchasing, budgeting, credit and ownership training, one-onone consultation, access to a national bank for automobile loans and ancillary services such as service contracts and guaranteed asset protection (“GAP”) coverage. The acquisition, which is contingent upon Dollar obtaining financing, is anticipated to be completed in early December.

Headquartered in Lexington, Kentucky, DFS was founded in 1996. The Company’s MILES program facilitates automobile financing to junior military personnel, who often lack credit history due to their youth and limited prior employment. The loans are funded and serviced under an exclusive agreement with a major third-party national bank, which funds and maintains the loan portfolio on its balance sheet, as well as bears any risk of repayment default. The unique underwriting standards of the third party bank lender, and the ability to purchase warranty and GAP insurance policies at a discount, help insulate the borrower from events that typically lead to loan default.

Southfield Capital acquired a majority stake in DFS from its founders in November 2006. In partnership with the senior management team at DFS, Southfield Capital helped more than double the Company’s revenue and EBITDA since acquisition. This growth was achieved through several key operational improvements, including (i) investment in IT infrastructure, (ii) increased focus on sales productivity and contract conversion, (iii) recruitment of additional management talent, and (iv) the institutionalization of key business practices and processes. The potential sale of DFS would represent a successful exit for Southfield Capital, its investors and DFS founders, as well as provides an attractive opportunity for the DFS management team to continue to execute on its growth strategy.

McGuireWoods LLC acted as legal advisor to DFS. Credit Suisse Securities (USA) LLC acted as exclusive financial advisor to DFS.

About Southfield Capital
Founded in 2005, Southfield Capital Advisors provides capital for majority recapitalizations and management-led buyouts of privately owned businesses. The firm has $150 million in committed capital
and makes investments in North American companies generating $5-15 million in EBITDA with proven
business models, attractive growth and profitability trends and solid leadership. Southfield Capital
partners with superior management teams with the collective interest of generating exceptional long-term
financial results. Headquartered in Greenwich, CT, Southfield Capital also has offices in Alexandria, VA
and Louisville, KY. More information on Southfield Capital can be found at