DFC Global Corp. Completes Acquisition of Pawn Store Chain in Spain
March 19 2012 - 8:00AM
Business Wire
DFC Global Corp. (NASDAQ:DLLR), a leading international
diversified financial services company serving primarily unbanked
and under-banked consumers for over 30 years, today announced the
acquisition of Super Efectivo, which provides pawn loans in Spain.
Super Efectivo S.L., founded in 2006, operates a chain of eight
stores predominantly in Madrid. The acquired stores primarily offer
pawn lending on gold jewelry and gold buying services. The total
purchase price of the transaction at closing was approximately $5.1
million in addition to payment for the value of the pawn pledge
inventory. The trailing twelve months EBITDA for the acquired
stores was approximately $1.5 million at the closing of the
transaction.
Commenting on the acquisition, Jeff Weiss, the Company’s
Chairman and Chief Executive Officer, stated, “We are excited to
enter the Spanish market, with a population of 47 million people
and a majority of the population working in service sector jobs,
which nicely fits with our target ALICE (Asset Limited, Income
Constrained, Employed) and ARTI (Asset Rich, Temporarily Illiquid)
demographics. Pawn lending is one of the oldest, most understood
and generally accepted businesses around the world and in many
countries like Spain, is a primary source of credit for a variety
of socio-economic groups. The pawn lending industry in Spain is
very fragmented and mainly composed of small store chain
establishments. We believe this acquisition provides an initial
entry point into Spain with an opportunity to further expand our
presence through additional store acquisitions supplemented with de
novo store development. Furthermore, when combined with our
“Suttons and Robertsons” and “Robert Biggar” pawn store chains in
England and Scotland, the approximately 450 “Money Shop” branded
stores across the United Kingdom, our more than 30 pawn lending
stores in Sweden and Finland operating under the brand names
“Sefina” and “Helsingin Pantti”, and seven “Money Now” stores in
Poland, the acquisition of “Super Efectivo” is just another step in
bolstering our position as the leading secured pawn lender in
Europe.”
Jeff Weiss continued, “Since pawn loans are provided based on
secured collateral, as opposed to employment or future earnings,
demand for pawn loans tends to be strong regardless of the economic
environment, further insulating our business from the effects of
changes in general economic conditions. In many parts of the world
pawn lending resides in the form of small “mom and pop” type
establishments, particularly in Europe. Our strategy is to
consolidate the pawn lending industry in selected European
countries through the initial acquisition of a number of smaller
store chains followed by a de novo store development program,
whereby leveraging our extensive product knowledge, strong
management team, and back-office infrastructure in both the U.K.
and Scandinavia. Recently, we established a second office in the
United Kingdom, in London, which is responsible for the development
and expansion of our pawn lending business throughout Europe. This
group will manage the integration of all pawn store acquisitions
and de novo store development in Europe outside of the United
Kingdom, and will provide management oversight and direction to
these businesses post-acquisition.”
About DFC Global Corp.
DFC Global Corp. is a leading international diversified
financial services company serving primarily unbanked and
under-banked consumers who, for reasons of convenience and
accessibility, purchase some or all of their financial services
from the Company rather than from banks and other financial
institutions. Through its over 1,300 retail storefront locations,
Internet websites and mobile phone and other remote platforms, the
Company provides a variety of consumer financial products and
services in eight countries across North America and Europe—Canada,
the United Kingdom, the United States, Sweden, Finland, Poland,
Spain and the Republic of Ireland.
The Company’s products and services, principally its short-term
single-payment consumer loans, secured pawn loans, check cashing
services and gold buying services, provide customers with immediate
access to cash for living expenses or other needs. The Company
strives to offer its customers additional high-value ancillary
services, including Western Union® money order and money transfer
products, foreign currency exchange, reloadable VISA® and
MasterCard® prepaid debit cards and electronic tax filing. In
addition to its core retail products, the Company also provides
fee-based services in the United States to enlisted military
personnel applying for loans to purchase new and used vehicles that
are funded and serviced under an exclusive agreement with a major
third-party national bank through the Company’s branded Military
Installment Loan and Education Services, or MILES®, program.
The Company’s networks of retail locations in Canada and the
United Kingdom are the largest of their kind by revenue in each of
those countries. The Company believes it is also the largest pawn
lender in Europe by revenue. At December 31, 2011, the Company’s
global retail operations consisted of 1,324 retail storefront
locations, of which 1,259 are company-owned stores, conducting
business primarily under the names Money Mart®, The Money Shop®,
Insta-Cheques®, mce®, Suttons and Robertson®, The Check Cashing
Store®, Sefina®, Helsingin PanttiSM, Optima® and MoneyNow!®. In
addition to its retail stores, the Company also offers
Internet-based short-term single-payment consumer loans in the
United Kingdom primarily under the brand names Payday Express® and
PaydayUK®, in Canada under the Money Mart name, and Finland, Sweden
and Poland primarily under the Risicum® and OK Money® brand names.
For more information, please visit the Company's website at
www.dfcglobalcorp.com.
Forward-Looking Statements
This news release contains forward-looking statements,
including, among other things, statements regarding the following:
pending or recent acquisitions and their expected benefits; the
Company’s future results, growth, guidance and operating strategy;
the global economy; the effects of currency exchange rates on
reported operating results; the regulatory environment in Canada,
the United Kingdom, the United States, Scandinavia and other
countries; the impact of future development strategy, new stores
and acquisitions; litigation matters; financing initiatives; and
the performance of new products and services. These forward-looking
statements involve risks and uncertainties, including risks related
to: the regulatory environment in each of each of the markets and
jurisdictions in which the Company conducts its business; current
and potential future litigation; the identification of acquisition
targets; the consummation of pending acquisitions, the integration
and performance of acquired stores and businesses; the performance
of new stores; the impact of debt and equity financing
transactions; the results of certain ongoing income tax appeals;
the effects of new products and services on the Company’s business,
results of operations, financial condition, prospects and guidance;
and uncertainties related to the effects of changes in the value of
the U.S. Dollar compared to foreign currencies. There can be no
assurance that the Company will attain its expected results,
successfully consummate pending acquisitions, successfully
integrate and achieve anticipated synergies from any of its
acquisitions, obtain acceptable financing, or attain its published
guidance metrics, or that ongoing and potential future litigation
or the various FDIC, Federal, state, Canadian, U.K., Scandinavia,
European Union, or other foreign legislative or regulatory
activities affecting the Company or the financial institutions with
which the Company does business will not negatively impact the
Company’s operations. A more complete description of these and
other risks, uncertainties and assumptions is included in the
Company’s filings with the Securities and Exchange Commission, the
Company’s annual reports and Forms 10-Q and 10-K. You should not
place any undue reliance on any forward-looking statements. The
Company disclaims any obligation to update any such factors or to
publicly announce results of any revisions to any of the
forward-looking statements contained herein to reflect future
events or developments.
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