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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event) December 15, 1998
ASSOCIATES FIRST CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 06-0876639
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification Number)
2-44197
(Commission File Number)
250 E. Carpenter Freeway, Irving, Texas 75062-2729
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (972) 652-4000
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Item 5. Other Events.
On December 15, 1998, Associates First Capital Corporation (the
"Registrant") announced it had completed its acquisition of The Northland
Company. A copy of the news release dated December 15, 1998 issued by the
Registrant is attached as Exhibit 20 and incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
20 - News Release by Associates First Capital Corporation
dated December 15, 1998
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ASSOCIATES FIRST CAPITAL CORPORATION
By: /s/ Frederic C. Liskow
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Frederic C. Liskow
Assistant Secretary
Date: December 15, 1998
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[LOGO]
THE ASSOCIATES.
NEWS
FOR IMMEDIATE RELEASE
THE ASSOCIATES FINALIZES NORTHLAND COMPANY ACQUISITION
Specialty insurance provider enhances Associates product line,
distribution system
DALLAS, Dec. 15, 1998 - Associates First Capital Corporation
(NYSE: AFS) announced today the completion of its acquisition of
The Northland Company, a specialty insurance company
headquartered in St. Paul, Minn. 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.
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THE ASSOCIATES COMPLETES ACQUISITION
OF NORTHLAND INSURANCE
December 15, 1998
Page 2
"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."
The Northland Company operates in 50 states and the District
of Columbia through a comprehensive network of managing general
agents, independent agents, brokers and program administrators.
The company, which has approximately 750 employees at its St.
Paul headquarters and offices in Itasca, Ill. and Scottsdale,
Ariz., wrote $388 million in net premiums in 1997 and is rated A+
(Superior) by A.M. Best.
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.
Associates First Capital Corporation, established in 1918,
is a leading diversified finance company providing consumer and
commercial finance, leasing and related services to more than 19
million customers worldwide. Headquartered in Dallas, it is one
of the nation's 100 largest companies, based on total market
capitalization. The Associates has achieved consistent growth
and pretax earnings in excess of 20 percent for more than 23
years.
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THE ASSOCIATES COMPLETES ACQUISITION
OF NORTHLAND INSURANCE
December 15, 1998
Page 3
This news release contains certain forward-looking
statements. The factors that may cause future results to differ
materially from expectations are discussed in the company's Form
10-K for the year ended December 31, 1997, filed with the
Securities and Exchange Commission.
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Contact information
News media: (972) 652-4522
www.theassociates.com
Securities analysts: (972) 652-7294
[email protected]
Shareholders: 1-888-NYSE-AFS