EZCORP (EZPW) Announces Completion of 13 USA Pawn & Jewelry Company Locations

EZCORP (NASDAQ: EZPW) has completed the acquisition of 13 USA Pawn & Jewelry Company pawn stores located in Arizona and Oregon. This acquisition gives EZCORP presence in the Phoenix, Arizona area and in Oregon, both of which are new markets for the company. This purchase price for this acquisition was $12.5 million in cash. The acquisition was completed in mid-August and is expected to be accretive to EZCORP’s earnings beginning October 1, 2015.

The company also announced that it has increased its ownership position in Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (“Grupo Finmart”) to 94%. The purchase price for the additional 18% interest was approximately $29 million in cash. This acquisition was completed on September 1.

Going forward, EZCORP will control the selection and composition of Grupo Finmart’s Board of Directors. However, to ensure continued alliance with local expertise and market knowledge, EZCORP will assemble an Advisory Board to support the strategic direction and institutionalization of the business.

Stuart Grimshaw, EZCORP’s Chief Executive Officer, said, “USA Pawn & Jewelry is a very successful operation, with well-run stores in strategic locations. This acquisition expands our market presence in Arizona, and we are now the second largest pawnshop operator in that state. The acquisition also gives us five stores in Oregon. This is our first-ever presence in the Pacific Northwest, which we consider to be a significant opportunity for us.

“These stores represent the third set of stores that we have purchased from Craig McCall. Craig is an extremely talented pawn entrepreneur and operator, and we look forward to continuing our relationship to develop further growth opportunities.

“I am also happy to announce we have increased our ownership in Grupo Finmart, which gives us control over the company, both at the board and management levels. Grupo Finmart is a growing business with an excellent product offering in an attractive market, and we are committed to this business.”

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