EZCORP Acquires 128 Pawn Stores in Mexico
June 09 2021 - 4:57PM
Business Wire
EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn
transactions in the United States and Latin America, announced that
it has acquired 128 pawn stores in Mexico. The stores, operating
under the name “Cash Apoyo Efectivo,” are principally located in
the Mexico City metropolitan area and enjoy strong brand
recognition in that market. The acquisition is the company’s
largest to date in terms of store-count. With this acquisition, the
company now operates a total of 1,154 pawn stores, 638 (55%) of
which are in Latin America, including 503 in Mexico.
The initial purchase price of $33.8 million includes cash of
$17.3 million, 212,870 shares of the company’s Class A Non-Voting
Common Stock valued at $1.6 million, and repayment of $14.9 million
of Cash Apoyo Efectivo’s existing debt. The sellers will be
entitled to additional payments of up to $4.6 million over the next
two years, contingent on the performance of the acquired
stores.
Jason Kulas, Chief Executive Officer, stated: “We are excited to
add this highly-regarded business to our Mexico pawn operations.
The addition of the 128 Cash Apoyo Efectivo stores solidifies our
position as the second largest for-profit competitor in Mexico,
which continues to be one of our most attractive growth markets for
both acquisitions and de novo store openings.
“We expect that this acquisition will be accretive to earnings
in fiscal 2022, although near-term performance will be affected by
the continuing recovery from COVID-related impacts, operational
changes that we will implement as we integrate the stores into our
existing business and non-recurring transitional expenses. Over the
medium-to-long-term, we see upside opportunities to increase pawn
balances and profitability through enhanced access to capital,
exposure to a broader range of general merchandise, implementation
of our efficient processes and realization of cost synergies with
the consolidation of back-office support functions.”
ABOUT EZCORP
Formed in 1989, EZCORP has grown into a leading provider of pawn
transactions in the United States and Latin America. We also sell
merchandise, primarily collateral forfeited from pawn operations
and pre-owned merchandise purchased from customers. We are
dedicated to satisfying the short-term cash needs of consumers who
are both cash and credit constrained, focusing on an
industry-leading customer experience. EZCORP is traded on NASDAQ
under the symbol EZPW and is a member of the Russell 2000 Index,
S&P 1000 Index and Nasdaq Composite Index.
FORWARD LOOKING STATEMENTS
This announcement contains certain forward-looking statements
regarding the company’s strategy, initiatives and expected
performance. These statements are based on the company’s current
expectations as to the outcome and timing of future events. All
statements, other than statements of historical facts, including
all statements regarding the company's strategy, initiatives and
future performance, that address activities or results that the
company plans, expects, believes, projects, estimates or
anticipates, will, should or may occur in the future, including
future financial or operating results, are forward-looking
statements. Actual results for future periods may differ materially
from those expressed or implied by these forward-looking statements
due to a number of uncertainties and other factors, including
operating risks, liquidity risks, legislative or regulatory
developments, market factors and risks associated with the COVID-19
pandemic. For a discussion of these and other factors affecting the
company’s business and prospects, see the company’s annual,
quarterly and other reports filed with the Securities and Exchange
Commission. The company undertakes no obligation to update or
revise forward-looking statements to reflect changed assumptions,
the occurrence of unanticipated events or changes to future
operating results over time.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210609005911/en/
Email: Investor_Relations@ezcorp.com Phone: (512) 314-2220
EZCORP (NASDAQ:EZPW)
Historical Stock Chart
From Mar 2024 to Apr 2024
EZCORP (NASDAQ:EZPW)
Historical Stock Chart
From Apr 2023 to Apr 2024