Cash America International, Inc. CSH announced today that it has
signed an asset purchase agreement for the acquisition of substantially all of
the assets of a chain of 34 pawn lending locations. When completed, the
transaction will add 31 pawn lending locations in Georgia and 3 locations in
North Carolina, which will expand Cash America's presence in both markets. The
stores are currently owned by PawnMart, Inc. and operate primarily under the
PawnMart brand in both markets.
The 31 stores in Georgia operate primarily in and around Atlanta where Cash
America currently operates 17 pawn lending locations, which will give the
Company 48 locations in this significant metropolitan area after closing the
transaction. In addition, the Company will add 3 stores in Charlotte, North
Carolina to its existing group of 16 pawn lending locations in North Carolina.
The 34 pawn lending locations had approximately $10.7 million in pawn loan
balances as of December 31, 2012 (unaudited).
Cash America expects the aggregate purchase price of the PawnMart locations to
be approximately $62 million (including consideration for certain
non-competition covenants), which will be paid in cash and funded by available
cash and through the Company's line of credit. The purchase price may be
adjusted based on the aggregate value of the pawn loan balance and the
merchandise inventory balance held by the seller at closing. The closing of
the transaction is subject to the satisfaction of certain closing conditions,
such as the receipt of certain approvals to be obtained by the seller and its
parent company, Xponential, Inc., licensing and the receipt of certain
regulatory approvals. If all closing conditions are satisfied, the closing of
the acquisition is expected to occur in the fourth quarter of 2013. This
acquisition is expected to be accretive to earnings immediately following its
closing.
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