Cash America International, Inc. (NYSE: CSH) announced today that it has signed an asset purchase agreement for the acquisition of a 41-store chain of pawn lending locations that operate in the State of Texas primarily under the name Top Dollar Pawn and owned by TDP Superstores Corp.
Commenting on the acquisition, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “We are excited about this opportunity to further expand Cash America’s pawn lending business in the State of Texas. This group of 41 stores allows us to grow our presence in many of the key markets in Texas where licensing restrictions exist. We are thrilled to bring Top Dollar Pawn’s group of well established pawn locations and talented personnel into the Cash America team.”
Top Dollar Pawn locations offer only pawn lending and related services. The business operates 15 stores in Houston, 13 stores in Dallas-Fort Worth, 5 stores in San Antonio and 8 additional locations in other central Texas markets. Top Dollar Pawn has been operating successfully since the mid 1990’s and had approximately $14.6 million in pawn loan balances as of December 31, 2012 (unaudited). Cash America operates 257 of its 828 U.S. lending locations in Texas, including 141 locations in common markets with Top Dollar Pawn.
Cash America estimates the aggregate purchase price of the Top Dollar Pawn acquisition to be approximately $102.5 million to be paid in cash, which may be adjusted based on the aggregate value of the pawn loan balance and the merchandise inventory balance held by seller at closing. The transaction is expected to be accretive to earnings following its closing, which should occur in the third quarter of 2013 and is subject to the satisfaction of customary closing conditions, including the completion of satisfactory due diligence, the termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the receipt of other regulatory approvals.