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Cash America, First Cash in $2.4B Pawnbroker Merger
May 3, 2016 3:42 AM
By Rapaport News
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RAPAPORT... Cash America International and First Cash Financial
Services, two leading U.S. pawnshop businesses, have agreed to merge in a “transformational”
$2.4 billion deal, the companies announced.
The combined group, to be known as First Cash, will be one of
the largest retail pawn stores in Latin America and the U.S., with more than
2,000 locations across four countries, the duo said. On completion of the deal,
expected in the second half, First Cash shareholders will own about 58 percent
of the newly created entity and Cash America investors will hold the rest.
“This is a transformational combination that creates
compelling growth and value creation opportunities for both companies’
stakeholders,” said Rick Wessel, chairman and chief executive officer of First
Cash. “The increased scale resulting from this combination will enable us to
serve more consumers in more markets than ever before.”
Meanwhile, Cash America reported revenue grew 2 percent year
on year to $277.2 million in the first quarter. Jewelry sales in the company’s
storefront locations increased, it said. |
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Tags:
Cash America, Cash America International, First Cash Financial Services, FirstCash, pawnbrokers, pawnshops, Rapaport News, retail
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