EZCORP, Inc. announced the acquisition of a controlling interest in Founders One, LLC, expanding its presence in the pawn loans market.
Founders, through its subsidiary SMG, operates 105 pawn stores in the U.S. and 11 other countries under the brands 'La Familia Pawn and Jewelry' and 'CashWiz'.
The transaction includes converting existing equity, cash injection, and a debt facility to support SMG's operations, enhancing EZCORP's ownership in Founders and SMG.
Based on unaudited results, Founders' revenue and gross profit showed significant growth in recent years, contributing positively to EZCORP's earnings.
Following the acquisition, EZCORP now operates a total of 1,488 pawn stores across 16 countries.
Strategic Acquisition
The acquisition of Founders One, LLC strengthens EZCORP's position in the pawn industry, expanding its geographic reach and enhancing earnings accretion.
Financial Impact
Founders' financial performance, with revenue and gross profit growth, will positively influence EZCORP's earnings and consolidate SMG's results into the Company's financial reports.
Ownership Increase
EZCORP's ownership in Founders increased to 87.7% following the transaction, consolidating its control over SMG with an 85.1% ownership interest.
- The acquisition positions EZCORP as a key player in the pawn loans market, particularly in North America.
- Consolidating SMG's financial results will provide a significant boost to EZCORP's earnings and financial performance in the coming periods.
The acquisition of Founders One, LLC marks a significant milestone for EZCORP, solidifying its position in the pawn industry and setting the stage for further domestic and international growth opportunities.