FirstCash : FCFS) to Acquire H&T Group (606a0f)

Published: 2025-05-14 17:21:11 ET FCFS

Published on 05/14/2025 at 17:21

NASDAQ: FCFS

FirstCash & H&T Group

Enhancing FirstCash's International Footprint

Beyond the Americas

May 14, 2025

FIRSTCASH HOLDINGS, INC.

Transaction Overview

Valuation & Consideration

Agreement on final(1) terms of the acquisition of the leading operator of pawn stores in the United Kingdom, H&T Group plc ("H&T")

FirstCash will pay 650 pence for each H&T share in cash (the "Cash Consideration")

In addition, H&T shareholders will receive a final dividend of 11 pence for each H&T share to be paid on 6/27/2025 (the "Permitted Dividend")

The total equity value including the Cash Consideration and Permitted Dividend is £296.6 million or $393.7 million USD(2)

The total enterprise value(3) based on H&T's net debt of £54.4 million at 12/31/24 is £351.0 million or $466.0 million USD(2)

Financing

FirstCash intends to draw down on its existing US revolving credit facility prior to closing to finance the acquisition and to pay related fees and expenses

FirstCash has also entered into a backstop £299.0 million bridge credit agreement to satisfy the "certain funds" requirements under the UK Takeover Code

Financial Impact

Meaningfully accretive to EPS and EBITDA

Expected to deliver long-term strategic and financial benefits

Approvals &

Closing

Unanimously approved by the Boards of Directors of both FirstCash and H&T

Subject to approval by H&T's shareholders and customary regulatory approvals in the United Kingdom

Anticipated close in second half of 2025

The financial terms of the acquisition (which will be made through Chess Bidco Limited, a newly-incorporated wholly-owned U.K. subsidiary of FirstCash) are final and will not be increased or improved, except that Chess Bidco Limited reserves the right to increase the amount of the Cash Consideration (i) if there is an announcement on or after the date of this presentation of a possible offer or a firm intention to make an offer for H&T by a third party or (ii) with the consent of the UK's Panel on Takeovers and Mergers (which will be granted only in wholly exceptional circumstances).

GBP / USD exchange rate of 1.3277 as of 5/13/2025.

Implied enterprise value on a pre-IFRS 16 basis, excluding lease liabilities.

Compelling Benefits of the Transaction

Establishes FirstCash's Market Leadership in the UK

Enhances Scale of Pawn Operations and Operating Leverage

Provides Additional Geographic Diversification

Unlocks Further Growth Opportunities in New Markets

Adds Experienced UK Leadership and Operations Team

Contributes Meaningful

EPS and EBITDA Accretion

At a Glance

£41M / $54M

2024 Adj. EBITDA(3)

£122M / $162M

2024 Income from Operations(2)

£265M / $352M

2024 Revenue

£460 / $611

Average Pawn Loan Amount (December 2024)

£127M / $169M

Pawn Receivables(1) (December 2024)

285

Pawn Stores

Founded in 1897, H&T is the UK's largest pawnbroker(1) and a leading retailer of high-quality new and pre-owned jewelry and pre-owned watches

Diversified product offering across 285 stores throughout the UK

Stores are conveniently located in most major towns and cities throughout England, Scotland, and Wales

H&T PRODUCT OFFERING CY2024 INCOME FROM OPERATIONS(2) BY PRODUCT

Pawnbroking

Purchase

Retail

Other Services

£

Foreign Currency

Money Transfer

Watch Repair

(Swiss Time Services)

Cheque Cashing

Gold, jewelry & watch purchasing, 12%

Retail, 16%

FX, 6%

£122M

Other, 2%

Pawnbroking,

64%

Source: Company website, Company presentations. Financial data is presented in accordance with IFRS as of 12/31/2024 unless otherwise noted. GBP / USD exchange rate of 1.3277 as of 5/13/2025.

Pawn receivables at contract amount.

Represents as reported Gross Profit less IFRS 9 impairment charge.

Calculated as reported EBITDA less expenses related to depreciation of the right-of-use assets and interest on lease liabilities, which are treated as "rent expenses" for compatibility to FirstCash's reported Adjusted EBITDA.

Disclaimer

Firstcash Holdings Inc. published this content on May 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2025 at 21:20 UTC.