JM Family Enterprises, Inc. Purchases Lease-End Management and Remarketing Business of BSC Direct, Inc.; New Company Named CenterOne Remarketing Services, LLC
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DEERFIELD BEACH, Fla.--June 5, 2001--Automotive company JM Family Enterprises, Inc. (JMFE) and BSC America, a diversified automotive and financial services company, today announced the acquisition by JMFE of the automotive lease-end management and remarketing business of BSC Direct, Inc. of Hunt Valley, MD. Renamed CenterOne Remarketing Services, LLC(SM), a subsidiary of CenterOne Financial Services(SM), the new business will remain in Hunt Valley and becomes the largest, privately owned remarketing services company in the United States.
The announcement was made by JM Family Enterprises' Chairman and CEO Pat Moran. The acquisition reinforces the company's strategic objectives to strengthen its position in the remarketing services marketplace and offer its clients a full range of financial services, she said. The new partnership will position CenterOne Remarketing Services as an industry leader in remarketing services, while leveraging solid resources in the areas of account management and customer service, she added.
According to Lou Feagles, president of JMFE Financial Services, "BSC Direct's impressive reputation as an industry leader in auto lease-end and remarketing services enables us to expand nationally with a strong client base. CenterOne Remarketing Services, along with CenterOne Financial Services, will now service approximately 700,000 prime loans and lease accounts, representing $10 billion in assets and more than $1.2 billion in dealer loans."
BSC America Chairman Ray Nichols stated, "We are proud to have built BSC Direct from the ground up since its founding four years ago to its current position as a leading provider of lease-end management and remarketing services. The transaction allows us to focus on our core businesses in the auto auction residual value insurance and liquidation arenas while continuing to buy, sell and develop ancillary businesses as opportunities arise."
John Eckenrode, president of Lee & Mason of Maryland, Inc., a BSC company known as the leading provider of residual value insurance for the automotive leasing industry, added, "We have been proud to work closely with BSC Direct in maximizing returns from leased portfolios and look forward to a continuing close relationship with CenterOne Remarketing Services."
By joining forces, CenterOne Financial Services and CenterOne Remarketing Services will have the ability to offer third-party outsourcing capabilities for consumer vehicle loans and leases, as well as automotive dealer loans, including:
| -- | Consumer loans and leases - the capability to include originations, account management, loan accounting and administration, customer service, collections, title follow up and recovery collections. |
| -- | Vehicle remarketing - residual loss strategy development, proactive telemarketing and multi-channel vehicle remarketing. |
Assuring clients that their business is in good, experienced hands and that they will continue to receive outstanding service is top priority for Feagles. "Our team is committed to implementing a smooth and well-organized transition with all our new clients," he said. "To the end customer, it will be invisible, with no disruption in servicing."
Feagles praised BSC Direct's management team for their commitment, professionalism and continuing support with the transition.
Under the direction of new CenterOne Remarketing Services' President Oney Hervey, the Hunt Valley service center will be managed by General Manager and Vice President Kim Laursen. According to Laursen, the company plans to keep the management team and workforce in place. CenterOne has plans to grow the business, he added.
About CenterOne
As part of JMFE, CenterOne Financial Services offers clients proven automotive financing and servicing experience, managing one of the largest lease portfolios in the industry. Clients include AutoNation Financial Services, Regions Bank, Southeast Toyota Finance and World Omni Financial Corp. CenterOne Financial, with the addition of CenterOne Remarketing, expands its vehicle remarketing product offering and services. CenterOne Financial provides third-party servicing for consumer loans and automotive leases, as well as wholesale/floorplan loans to dealers. Its corporate offices are located in Deerfield Beach, FL. In addition to Hunt Valley, other CenterOne customer service centers are located in St. Louis, MO and Mobile, AL. For more information, visit the CenterOne Web site at www.centeronefinancial.com.
About JM Family Enterprises, Inc.
JM Family Enterprises, (www.jmfamily.com) ranked by Forbes as the 19th largest privately held company in the United States, is a $7.1 billion diversified automotive corporation whose principal businesses focus on vehicle distribution and processing, finance and warranty services, and insurance products and services. In December 2000, the company was ranked by a survey in FORTUNE(R) magazine as one of the 100 Best Companies to Work for in the United States. The company is headquartered in Deerfield Beach, FL, and has significant operations in Jacksonville and Margate, FL; Mobile, AL; Commerce, GA; St. Louis, MO; and Hunt Valley, MD.
About BSC Direct, Inc.
BSC Direct is a national automotive lease-end services and vehicle remarketing company located in Hunt Valley, MD.
About BSC America
BSC America, headquartered in Bel Air, Maryland, is an association of affiliated companies founded by Nichols, his family and key partners. Dedicated to providing diversified services to it clients, the company operates auto auctions in Tallahassee and Fort Pierce, Florida; New Orleans, Louisiana; and Bel Air, Maryland. The 30 companies in the BSC America family also include Lee & Mason of Maryland, Inc., the nation's leading provider of residual risk coverage and specialized insurance products for the vehicle leasing industry. For more information, visit the BSC America Web site at www.bscamerica.com.
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