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FirstCash Expands Reach with Acquisition of H&T Group in UK
FirstCash announces acquisition of UK-based H&T Group, expanding its market presence and growth prospects in Europe.
Acquisition Details
FirstCash Holdings, Inc. has announced its acquisition of H&T Group plc, a leading pawnbroker in the UK, marking FirstCash’s entry into the UK market. The company will purchase H&T shares at 650 pence each, totaling approximately £297 million ($394 million USD), including a dividend distribution to H&T shareholders. This acquisition is expected to enhance FirstCash’s geographic diversification and growth opportunities, solidifying its position as a major player in pawn operations across the U.S., Latin America, and the UK. FirstCash anticipates that this addition will significantly benefit its EBITDA and EPS, leveraging H&T’s established brand and management team for further growth in the region. The deal has been unanimously approved by both companies’ boards and is set to close in the latter half of 2025, subject to shareholder and regulatory approvals.
Potential Benefits
- Marks FirstCash’s strategic entry into the UK market through an established, industry-leading brand.
- Provides further geographic diversification and unlocks additional growth opportunities.
- Expected to be meaningfully accretive to EBITDA and EPS, strengthening FirstCash’s financial profile.
- Strengthens FirstCash’s position as a global leader in pawn operations, creating the largest publicly traded pawn platform in the U.S., Latin America, and the UK.
Possible Challenges
- The acquisition is subject to approval by H&T’s shareholders and customary regulatory approvals in the United Kingdom, which introduces uncertainty and potential delays to the transaction.
- There is a risk that FirstCash may incur additional indebtedness to finance the acquisition, which could negatively affect its financial stability.
- FirstCash is entering a new geographical market, exposing itself to local economic and political conditions, and potentially facing challenges in integration and management of H&T.
Frequently Asked Questions
What is the significance of FirstCash acquiring H&T Group plc?
The acquisition marks FirstCash’s strategic entry into the UK market, enhancing geographic diversification and growth opportunities.
How much will FirstCash pay for H&T shares?
FirstCash will pay 650 pence for each H&T share, plus a final dividend of 11 pence per share.
When is the expected close date for the acquisition?
The acquisition is expected to close in the second half of 2025, pending shareholder and regulatory approvals.
What will be the financial impact of the acquisition?
The transaction is anticipated to be accretive to EBITDA and EPS, strengthening FirstCash’s financial profile.
Who will manage H&T after the acquisition?
H&T’s experienced management team will continue to lead operations under the FirstCash global platform.
Insider Trading Activity
$FCFS insiders have traded $FCFS shares on the open market 4 times in the past 6 months. Of those trades, 0 have been purchases and 4 have been sales.
Here’s a breakdown of recent trading of $FCFS stock by insiders over the last 6 months:
- DOUGLAS RICHARD RIPPEL sold 300,000 shares for an estimated $34,029,000
- R DOUGLAS ORR (EVP & Chief Financial Officer) has made 0 purchases and 3 sales selling 6,000 shares for an estimated $680,120.
Hedge Fund Activity
During the most recent quarter, 181 institutional investors added shares of $FCFS while 154 decreased their positions.
Here are some of the largest recent moves:
- FMR LLC added 731,682 shares (+12.7%) for an estimated $88,035,978
- FIDUCIARY MANAGEMENT INC /WI/ added 563,265 shares (+76.1%) for an estimated $58,354,254
- BLACKROCK, INC. removed 347,796 shares (-6.4%) for an estimated $41,846,814
- ALYESKA INVESTMENT GROUP, L.P. removed 269,799 shares (-88.7%) for an estimated $27,951,176
- D. E. SHAW & CO., INC. added 228,784 shares (+349.3%) for an estimated $23,702,022
- TIDAL INVESTMENTS LLC added 209,471 shares (+inf%) for an estimated $21,701,195
- MILLENNIUM MANAGEMENT LLC added 149,439 shares (+332.5%) for an estimated $15,481,880
Full Release
Marks FirstCash’s strategic entry into the UK market through an established, industry-leading brand;
Provides further geographic diversification and unlocks additional growth opportunities;
Expected to be meaningfully accretive to EBITDA and EPS;
Strengthens FirstCash’s position as a global leader in pawn operations.
FORT WORTH, Texas, May 14, 2025 — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), a leading international operator of over 3,000 retail pawn stores in the U.S. and Latin America, today announced that it has reached an agreement on the terms of a final recommended cash acquisition of H&T Group plc (“H&T”), the leading operator of pawn stores in the United Kingdom. Under the terms of the agreement, FirstCash (through a newly incorporated wholly-owned U.K. subsidiary, Chess Bidco Limited) will pay cash consideration of 650 pence for each share of H&T. In addition, H&T shareholders will receive a final dividend of 11 pence for each share on June 27, 2025. The total equity value, including cash consideration for the shares and the final cash dividend, is approximately £297 million or $394 million USD based on the exchange rate as of the close of business on May 13, 2025.
The acquisition of H&T expands FirstCash’s geographic footprint into a new and attractive market, enhancing its scale, operating efficiencies, and long-term growth opportunities. This combination will create the largest publicly traded pawn platform in the United States, Latin America, and the United Kingdom.
Mr. Rick Wessel, Chief Executive Officer and Vice-Chairman of the Board of FirstCash, commented, “We are excited to add H&T, the leading pawn…
“`# FirstCash Acquires H&T to Expand Pawn Operations in the UK
FirstCash Holdings, Inc. has announced the acquisition of H&T Group plc, a leading pawn shop operator based in the United Kingdom. This strategic move allows FirstCash to enter a significant new market and is expected to unlock growth opportunities. FirstCash expresses strong confidence in H&T’s future, citing its proven success and experienced management team.
Chris Gillespie, CEO of H&T, commented, “This acquisition brings together two businesses with complementary strengths. I take great pride in our team and believe FirstCash’s support will lead to a bright future for H&T.”
The financial terms of the acquisition are final, with Chess Bidco Limited, a subsidiary of FirstCash, holding the right to adjust cash consideration only under specific conditions, including third-party offers or regulatory approvals.
Strategic and Financial Advantages
- Market Leadership: H&T enhances FirstCash’s status as the top operator of pawn stores in the UK, featuring a network of 285 stores.
- Geographic Expansion: This acquisition further diversifies FirstCash’s international growth strategy by entering the UK pawn market, complementing their existing operations in the U.S. and Latin America.
- Growth Potential: H&T’s strong brand offers FirstCash a platform for deeper market penetration in the UK and possible expansion into other European regions.
- Operational Efficiency: By acquiring 285 stores, FirstCash aims to increase its scale and optimize efficiencies throughout its global network.
- Leadership Expertise: H&T’s skilled management team brings substantial local expertise that will aid FirstCash in executing its strategy effectively.
- Financial Strength: The acquisition is anticipated to significantly boost both EBITDA and EPS, enhancing FirstCash’s financial profile and shareholder value.
Transaction Details and Timeline
The Boards of Directors of FirstCash and H&T have unanimously approved the acquisition. It awaits shareholder approval and regulatory endorsements in the UK. Completion is projected for the second half of 2025, contingent upon these approvals and other customary conditions.
Presentation Materials
Additional materials related to the transaction will be accessible in the investor relations section of FirstCash’s website at investors.firstcash.com.
Advisors
Jefferies LLC is serving as FirstCash’s exclusive financial advisor, while Alston & Bird LLP and Macfarlanes LLP provide legal counsel. For H&T, Canaccord Genuity acts as the lead financial advisor, with Shore Capital as a joint financial advisor. Gowling WLG (UK) LLP serves as legal advisor for H&T.
Important Information
This release is for informational purposes only and does not constitute an offer or solicitation concerning the acquisition of H&T shares. The transaction will occur via a court-sanctioned scheme of arrangement under the UK Companies Act, which includes necessary details on how to vote regarding the Scheme. H&T shareholders should thoroughly review the Scheme document upon its release for essential acquisition information.
Additional Notes
This acquisition employs a scheme of arrangement under English law. These transactions are not subject to U.S. tender offer or proxy solicitation rules, and disclosure requirements may differ from those applied in the U.S. Consequently, the financial information presented conforms to UK accounting standards, which may not align with U.S. GAAP.
U.S. holders receiving cash for their H&T shares may face tax implications, as the transaction proceeds will be taxable. Details will be provided following the completion of the acquisition.
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FirstCash Executing Strategic Acquisition of H&T: What You Need to Know
Tax Implications for H&T Shareholders
Each H&T shareholder should consult an independent financial adviser about the tax implications of the Acquisition according to U.S. federal income tax, state and local laws, and applicable foreign tax laws.
Purchases of H&T Shares Prior to Acquisition
Bidco, along with its agents, may make purchases of H&T shares outside the United States until the Acquisition is complete or withdrawn. Such transactions will comply with U.S. laws and the UK City Code on Takeovers and Mergers. Details of these purchases will be reported to the Regulatory Information Service and available on the London Stock Exchange website.
Forward-Looking Statements
This release includes forward-looking statements regarding the Acquisition and the financial outlook of both FirstCash and H&T. According to the Private Securities Litigation Reform Act of 1995, such statements can be identified by terms like “projects,” “anticipates,” or “expects.” Because these statements deal with future events, they are subject to various risks and uncertainties.
Although the Company believes its forward-looking expectations are reasonable, there are inherent risks that could lead to different outcomes. Factors affecting the Acquisition range from potential delays in regulatory approvals to challenges in integrating H&T successfully. Shareholders are advised that these risks could materially affect the anticipated benefits of the Acquisition.
For a more thorough discussion of risks, refer to the Company’s latest Annual report on Form 10-K filed with the U.S. Securities and Exchange Commission. Forward-looking statements in this release are as of the posting date, and the Company disclaims any obligation to update them unless required by law.
Website Accessibility
A copy of this release will be available on the Company’s website by noon (London time) on the business day following publication, as required under Rule 26.1 of the Code. Please note that website contents are not part of this release.
Requesting Hard Copies
According to Rule 30.3 of the Code, eligible individuals can request a hard copy of this release and related documents by contacting H&T’s registrars, Equiniti. More information is available via their contact details provided above.
Company Overview: FirstCash
FirstCash operates over 3,000 pawn stores across the U.S. and Latin America, focusing on consumers who require cash and credit. Its services include purchasing and selling various merchandise and providing small loans secured by personal property. Approximately 80% of FirstCash’s earnings come from its pawn business, with the remainder from its subsidiary, AFF, offering retail finance solutions.
FirstCash is publicly traded on Nasdaq under the ticker symbol “FCFS” and is included in both the S&P MidCap 400 Index and the Russell 2000 Index.
Company Overview: H&T
H&T is the largest pawnbroker in the UK and retails new and pre-owned jewelry and watches. It also offers financial services for consumers often excluded from traditional banking. H&T’s offerings include pawnbroking and foreign currency exchange.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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