Pawn business Cash America adds 39 shops
Pawn shop operator Cash America International entered into an asset purchase agreement with Maxit Financial LLC for 39 pawn shops, according to the company
Cash America agreed to pay $70 million in cash and stocks for the locations. Once the transaction closes, Cash America will add 244 new pawn shops to its business, a 25-percent increase, during the past two years.
These new sites will expand the Fort Worth, Texas-based company’s presence in Washington, where it only has five pawn shops, and Arizona, which has 11 company-owned and seven franchised-owned locations. Of the newly acquired shops, 29 reside in Washington and 10 are in Arizona.
Operating 737 lending locations in 28 states, Cash America offers consumers various financial services under the names Cash America Pawn, SuperPawn, Cash America Payday Advance and Cashland. The company is also a majority owner of 200 locations in Central and Southern Mexico under the name Prenda Facil.
Additionally, Cash America operates 125 check cashing centers in 16 states under the name Mr. Payroll and provides short-term loans via the Internet nationwide and internationally.
President and Chief Executive Officer Daniel Feehan said in a statement that increasing Cash America
’s presence in Washington and Arizona is part of the company’s nationwide expansion strategy.
“Increasing our pawn-lending storefront locations remains a priority for Cash America and we believe that this acquisition will enhance our presence in these two important markets in the United States through increased revenue and greater market coverage,” he said.
The acquisition comes two weeks after Cash America announced that its second quarter profits rose 26 percent to $20.9 million compared to the same time last year.
The company credits this increase to a massive surge within its e-commerce lending and higher earnings business segments. Feehan added in a company release that Cash America had an “abnormally high level of pawn redemptions in the first quarter of 2010.”
"Consumer loan volumes in our e-commerce segment, both domestic and foreign, continue to significantly outpace growth of consumer loan volume in our U.S. storefronts and are building asset levels that should aid future earnings growth,” he said.
Cash America’s consumer loan portfolio increased 28 percent to $70.9 million during the second quarter compared to the same time last year. Feehan predicts that Cash America’s e-commerce and consumer loan business will continue to climb in the third quarter.
The List database was unable to identify which marketing and communications agencies, if any, that Cash America currently works with.
The Nielsen Company reported that Cash America spent $3.7 million on measured media in 2009. About $1.8 million was spent on cable television ads, about $1.4 million was spent on spot television ads and about $300,000 was spent on spot radio ads.
Cash America International, Inc.
1600 West Seventh Street
Fort Worth, TX 7610
President & Chief Executive Officer
Vice President, Sales & Marketing