DFC Global Corp. (NASDAQ: DLLR), a leading international diversified financial services company serving primarily unbanked and under-banked consumers for over 30 years, today announced the acquisition of ten pawnbroking stores in the United Kingdom. The acquired stores, which reside in high population centers and visible locations with strong ALICE (Asset Limited, Income Constrained, Employed) and ARTI (Asset Rich, Temporarily Illiquid) populations across northern and southern England, currently offer pawn lending secured by gold jewelry, gold buying, foreign exchange and check cashing services.
The Company intends to immediately rebrand the stores as “The Money Shop” stores and expand the product offering to include the full array of the Company’s products including short-term loans, money transfer, debit cards and a number of other products and services. Consideration for the acquisition, including pledge book, is $6.4 million, and the acquisition is expected to be immediately accretive to earnings.
“The expansion of our secured pawn lending footprint is an important component of our goal to be the leading global provider of financial services to the growing ALICE and ARTI populations, as it allows us to provide loans to customers that prefer to use their high value gold jewelry, diamonds, and watches as collateral,” said Jeff Weiss, Chairman and Chief Executive Officer of DFC Global Corp. “Consistent with this strategy, we intend to acquire additional pawn lending store chains in the United Kingdom and continental Europe, supplemented with de novo store development, and accompanied by our planned expansion of secured jewelry lending in select North American locations. In addition to enabling us to service the needs of this growing customer segment, we believe the expansion of our secured pawn lending business will serve to strengthen our global loan book with a stronger blend of both secured and unsecured loans.”
About DFC Global Corp.
DFC Global Corp. is a leading international diversified financial services company serving primarily unbanked and under-banked consumers who, for reasons of convenience and accessibility, purchase some or all of their financial services from the Company rather than from banks and other financial institutions. Through its over 1,400 retail storefront locations and multiple Internet, mobile phone and other remote platforms, the Company provides a variety of consumer financial products and services in nine countries across North America and Europe—the United Kingdom, Canada, the United States, Sweden, Finland, Poland, Spain, Czech Republic and the Republic of Ireland. The Company believes that its customers, many of whom receive income on an irregular basis or from multiple employers, are drawn to the range of financial services it offers, the convenience of its products, the multiple ways in which they may conduct business with the Company and its high-quality customer service.