Cash America International, Inc. (NYSE:CSH) announced today that it has completed the acquisition of a chain of 34 pawn lending locations in the States of Georgia (31 locations) and North Carolina (three locations). These stores were owned by PawnMart, Inc. and operate primarily under the PawnMart brand in both markets. Cash America previously announced that it had signed a definitive agreement in connection with the acquisition in August 2013, with the intention of completing the acquisition during the fourth quarter of 2013. After completion of the transaction, Cash America operates 48 locations in Georgia and 20 locations in North Carolina.
Management expects that the acquisition will be immediately accretive to earnings; however, the incremental earnings from the additional operating locations will not materially affect its expectations, published October 24, 2013, for the final quarter of fiscal 2013, which included the anticipated benefit of the acquisition.
The aggregate purchase consideration for the PawnMart acquisition was approximately $61 million. The full amount of the consideration was paid in cash and funded through borrowings under Cash America’s line of credit.
About the CompanyAs of September 30, 2013, Cash America International, Inc. (the “Company”) operated 995 total locations offering specialty financial services to consumers, which included the following:
- 860 lending locations in 22 states in the United States primarily under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance,” and “Cashland;”
- 47 pawn lending locations in central and southern Mexico under the name “Cash America casa de empeño;” and
- 88 check cashing centers (all of which are unconsolidated franchised check cashing centers) operating in 13 states in the United States under the name “Mr. Payroll.”
- 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.
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