Cash Converters splashes cash on its biggest UK franchisee
Cash Converters has acquired its largest franchisor in the UK, Capital Cash, for $24.7 million.
The purchase will be funded using the company’s existing cash reserves while the settlement – subject to meeting certain terms and conditions – is set to be completed in the middle of this year.
Capital Cash has been operating in the UK for more than 20 years and offers pawnbroking, buy-back and retailing of second-hand goods its across 42 stores.
The company registered an underlying EBITDA of $5.1 million in the last financial year.
Cash Converters MD, Sam Budislik, said the company is continuing to “assess” its opportunities to invest in “capital sensibly”.
As part of the acquisition, Carl Murray, MD of Capital Cash, will become CEO of the UK operations and is tasked with realising growth objectives in the country.
In October last year, the company acquired its New Zealand master franchisor for $15.5 million.
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