EZCORP Announces Strategic Acquisition of 112 Pawn Stores in Latin America
October 09 2017 - 7:05AM
EZCORP, Inc. (NASDAQ:EZPW), a leading provider of pawn loans in the
United States and Mexico, today announced its further expansion
into Latin America. The company has acquired GuatePrenda –
MaxiEfectivo (“GPMX”), a business that owns and operates 112 pawn
stores located in Guatemala (72 stores), El Salvador (17 stores),
Honduras (12 stores) and Peru (11 stores). With this acquisition,
EZCORP now has a total of 871 pawn stores, including 513 in the
U.S. and 358 in Latin America.
GPMX was founded in 2002 as a gold jewelry pawn business. After
growing to around 20 stores in Guatemala, it expanded its
operations to El Salvador in 2005 and opened its first stores in
Honduras and Peru in 2009. In 2013, GPMX began offering
general merchandise pawn loans in addition to jewelry loans. GPMX
has almost 700 employees throughout the four countries.
Stuart Grimshaw, EZCORP Chief Executive Officer, stated:
“The GPMX acquisition is our largest pawn acquisition to date in
terms of store count. It significantly expands our store base into
Latin American countries outside of Mexico and will be immediately
accretive to our earnings. With a high-quality management team in
place and the opportunity to implement EZCORP’s systems and best
practices, GPMX provides a platform for significant further growth
in the region.
“The existing GPMX business is very attractive, with an average
per store pawn loan balance higher than our existing stores in
Mexico or the Latin American stores of our major competitor. And we
see opportunities to grow the business through the expansion of
general merchandise pawn loan and retail activities, the opening of
new stores in attractive and under-penetrated markets, and the
pursuit of complementary acquisitions.
“We have been very pleased with the market leading growth we are
delivering in Mexico, and we expect this acquisition to provide
similar opportunities for further growth and earnings accretion in
some very attractive markets.”
EZCORP paid $53.4 million in cash at closing, with an additional
$2.25 million to be paid contingent upon the performance of the
business. At the time of acquisition, GPMX had $6.6 million of
indebtedness owed to affiliates of the seller, and that debt will
be repaid as promptly as practicable after the closing. The
definitive acquisition agreement was entered into on October 4,
2017, and the closing occurred on October 6, 2017.
Additional information about the terms of the transaction can be
found in EZCORP’s Current Report on Form 8-K, which the company
expects to file on October 10, 2017.
CONFERENCE CALL
EZCORP will host a conference call on Monday, October 9, 2017,
at 7:30am Central Time to discuss the acquisition of GPMX announced
today and the restructured notes receivable repayment arrangement
with AlphaCredit announced on October 3, 2017. Analysts and
institutional investors may participate on the conference call by
dialing (833) 231-8256, Conference ID: 96254134, international
dialing (647) 689-4550. The conference call will be webcast
simultaneously to the public through this link:
http://investors.ezcorp.com/. A replay of the conference call will
be available online at http://investors.ezcorp.com/ shortly
after the call.
ABOUT EZCORP
EZCORP is a leading provider of pawn loans in the United States
and Latin America. We also sell merchandise, primarily collateral
forfeited from pawn lending operations and used merchandise
purchased from customers. EZCORP is a member of the Russell
2000 Index, S&P SmallCap 600 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 or current or future litigation. 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.
Contact:
Jeff ChristensenVice President, Investor RelationsEmail:
jeff_christensen@ezcorp.comPhone: (512) 437-3545
EZCORP (NASDAQ:EZPW)
Historical Stock Chart
From Mar 2024 to Apr 2024
EZCORP (NASDAQ:EZPW)
Historical Stock Chart
From Apr 2023 to Apr 2024