EZCORP, a pawn-loan provider in the U.S. and Mexico, said on Thursday that it has acquired 13 USA Pawn & Jewelry Company stores in Arizona and Oregon, expanding its market while establishing a Phoenix footprint.
The $12.5 million cash acquisition, completed last month, is expected to be accretive to EZCORP's earnings starting Oct. 1. Additionally, the company said it has increased its stake in Mexico’s Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (Grupo Finmart) from 76 percent to 94 percent for approximately $29 million in cash.
“This acquisition expands our market presence in Arizona, and we are now the second-largest pawnshop operator in that state,” EZCORP CEO Stuart Grimshaw said. “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.”
With its increased stake in Grupo Finmart, EZCORP will oversee that company’s board of directors, ensuring ongoing coordination at a local level with the creation of an advisory board. The company also operates a payroll withholding lending business in Mexico through Grupo Finmart.
EZCORP is a leading provider of pawn loans in the U.S. and Mexico, as well as consumer loans in Mexico. Its pawn stores also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from consumers.