Terms of the deal call for Lone Star Global Acquisitions Ltd. to pay $9.50 per share in cash for each share of Berwyn, Pa.-based DFC, a premium of about 5.8% to the target's Tuesday close. The deal values DFC equity at about $366.5 million.
DFC is a provider of unsecured consumer loans, secured pawn loans, check cashing, gold buying and other services in ten European and North American countries, operating from about 1,500 retail outlets with brands including Money Mart, The Money Shop, Insta-Cheques, MoneyNow! and ExpressCredit.
Company chairman and CEO Jeff Weiss in a statement said the deal "delivers immediate cash value to our stockholders" while providing DFC with a partner that can help it to expand.
"Lone Star Funds is a sophisticated investor with broad-based financial and retail expertise, and we look forward to taking advantage of enhanced financial flexibility to find new ways to build our business while continuing to meet and exceed the needs of our global customer base," Weiss said.
DFC has been the target of shareholder lawsuits accusing the company and some of its executives of misrepresenting information to investors. The company in November withdrew a $650 million senior unsecured notes offering and called off a cash tender for outstanding notes after a class action lawsuit was filed against it.