The Associates Finalizes Northland Company Acquisition

Associates First Capital Corp. says it has completed its acquisition of The Northland Co., a specialty insurance company headquartered in St. Paul, MN. The addition of Northland more than triples The Associates property and casualty insurance business and enhances The Associates existing lines of insurance and financial products. Terms of the acquisition were not disclosed.

"The Northland Company and The Associates share a similar approach to management and profitability," said Keith W. Hughes, The Associates chairman and chief executive officer. "The synergies between our companies will enable us to expand customer relationships and sell a full line of financial services products to our customers."

The Northland acquisition marks The Associates commitment to insurance as a key strategic business. Currently, The Associates sells credit-related insurance, mainly to customers of its consumer finance and commercial finance operations. Northland's insurance products, which include commercial auto (predominantly trucking), excess and surplus lines, non-standard auto, surety and customs bonds, complement The Associates existing insurance business and significantly expand its distribution capability.

"Nearly half of Northland's writings are in truck and manufactured housing lines of businesses, a market The Associates serves extensively," said Hughes. "We have a tremendous opportunity to expand our combined insurance operations and forge new relationships with customers who want a full-service financial services provider."

Northland will continue to be managed by Gene G. Gopon, its current president, and will operate as a standalone business under its current name. "One of the primary attractions of Northland is its experienced management team," said Hughes. Gopon will report to David A. Brooks, who was recently named senior executive vice president—Insurance Operations at The Associates. Northland's non-insurance businesses, including a mortgage banking company and a property management subsidiary, were divested prior to the acquisition.