By Adriano Marchese

Chesswood Group Ltd. said Wednesday that it has agreed to acquire finance company Rifco Inc. in a deal valued at 28 million Canadian dollars, or roughly US$22.6 million.

The Canadian alternative auto-finance company said it will acquire all of the issued and outstanding common shares of Rifco by way of a statutory plan of arrangement.

Chesswood Group said it will pay C$1.28 for each Rifco share held by its shareholders.

"The acquisition of Rifco provides Chesswood with a highly attractive and scalable platform in the Canadian auto-finance sector," President and Chief Executive Officer Ryan Marr said.

Write to Adriano Marchese at adriano.marchese@wsj.com