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ARLINGTON, Texas, Aug. 16, 2012 (GLOBE NEWSWIRE) -- First Cash Financial Services, Inc. (Nasdaq:FCFS) today announced that it has entered into an agreement for the purchase of a 16-store chain of pawn stores located in the Denver, Colorado area. The 16 locations, which operate under the "Fast Cash Pawn" brand, are all large format, full-service pawn stores.
Rick Wessel, chief executive officer of First Cash, stated, "We are pleased to announce the Fast Cash acquisition. It will further expand our U.S. store base and will significantly deepen our geographic presence in the Rocky Mountain markets. Fast Cash is a well-established operation with large pawn balances, significant market share and strong brand awareness in the Denver metro area. Coupled with our recent acquisition of Colorado-based Mister Money, we will now have a total of 33 large format pawn locations in Colorado, Wyoming and western Nebraska. This acquisition is consistent with our long-term growth strategy and we expect it to be accretive to earnings in 2013."
The purchase price for this acquisition is approximately $46 million, $8.5 million of which will be paid through the issuance of five year notes payable to the selling shareholders, with the balance to be paid in cash at closing, subject to standard working capital adjustments. The operations and earnings of the acquired Fast Cash stores will be consolidated into First Cash effective with the closing of the transaction, which is expected to occur later this year, subject to the satisfaction of customary closing conditions. The Company expects transaction and integration costs associated with the acquisition to be approximately $0.02 to $0.03 per share.
Store Count Update
The Company has added 127 new locations thus far in 2012, which includes the 16-store Fast Cash acquisition, a 24-store U.S. acquisition in June, a 29-store acquisition in Mexico in January, 50 new stores opened in Mexico and eight other new or acquired stores in the U.S. Accordingly, the Company is now planning for fiscal 2012 store additions to be in a record range of 140 to 145 total locations, which represents a 21% increase in the consolidated store count since the beginning of the year.