Cash America International, Inc. (NYSE: CSH) announced today that it has entered into agreements to add 34 pawn lending locations in the United States through two independent transactions. The additional locations will expand the Company’s presence in Tennessee, North Carolina, Kentucky and Arizona where the Company already operated 82 pawn lending locations. Based on recent unaudited results, the 34 locations will add approximately $11 million in pawn loan balances to the Company’s total U.S. pawn loan portfolio which stood at $222 million as of June 30, 2012.
The Company entered into a purchase agreement for the larger of the two transactions just prior to the end of its third quarter ended September 30, 2012. This transaction added 25 locations to the Company’s store count for the period but did not materially increase earnings for the period due to the short period of inclusion of the operations. The Company has also agreed to terms under a signed purchase agreement for another transaction, which will add 9 locations, and is expected to close during the fourth quarter of 2012. The combined consideration for the two transactions is expected to be between $68 and $72 million in cash. The Company used its long-term line of credit facility to fund the first transaction and anticipates the same upon the closing of the second transaction.
Commenting on the two acquisitions, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “We have continued our emphasis of expanding our pawn lending presence through new stores and acquisitions throughout the United States. These two transactions expand our market share in a variety of attractive markets and position the Company for future growth.”
About the CompanyAs of June 30, 2012, Cash America International, Inc. operated 1,086 total locations offering specialty financial services to consumers, which included 790 lending locations (including one unconsolidated franchised location) in 23 states in the United States under the names “Cash America Pawn,” “SuperPawn,” “Pawn X-Change,” “Cash America Payday Advance,” and “Cashland” and 195 pawn lending locations in 21 jurisdictions in central and southern Mexico under the name “Prenda Fácil.” The Company also operated 95 unconsolidated franchised and six Company-owned check cashing centers operating in 16 states in the United States under the name “Mr. Payroll” as of June 30, 2012. Additionally, as of June 30, 2012, the Company offered consumer loans over the Internet to customers in 32 states in the United States at http://www.cashnetusa.com and http://www.netcredit.com, in the United Kingdom at http://www.quickquid.co.uk and http://www.poundstopocket.co.uk, in Australia at http://www.dollarsdirect.com.au, and in Canada at http://www.dollarsdirect.ca. For additional information regarding the Company and the services it provides, visit the Company’s websites located at:
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