Combined business to Have Experienced Management Team and a platform that is strong development and Value production
Financial Strength to b st capability to Expand in growing American that is latin Market to guide Capital Returns to Shareholders
Combined business anticipated to spend yearly money Dividend of $0.76 Per Share
Transaction anticipated to Be considerably Accretive to Free cashflow and Earnings Per Share
Increased Scale Expected to bring about $50 Million in Annual Run-Rate Synergies
First Cash and money America to Host Joint Conference Call and Webcast at 8 00 a.m. ET Today
ARLINGTON, Texas & FORT WORTH, Texas–( COMPANY WIRE )–First Cash Financial solutions, Inc. (NASDAQ FCFS), a respected international operator of retail pawn shops in Latin America plus the united states of america, and money America Overseas, Inc. (NYSE CSH), a prominent operator of retail pawn shops in the us, today announced they have entered in to a definitive merger agreement under that your two businesses will combine in a taxation free, all-stock deal. The pro-forma market value of equity for the transaction is respected at more or less $2.4 billion, on the basis of the present stocks outstanding while the closing stock cost on April 27, 2016 for both businesses.
The combined business, become known as FirstCash, could have one of many biggest pawn that is retail f tprints in Latin America and also the united states of america, with more than 2,000 areas across four nations. The robust cash flows and monetary power of this merged businesses will permit greater money returns to investors in the shape of increased money dividends and additional stock buybacks and for continued expansion in Latin America.
вЂњThis is just a combination that is transformational produces compelling development and value creation opportunities for both companiesвЂ™ stakeholders,вЂќ said Rick Wessel, Chairman and ceo of First money. вЂњThe increased scale caused by this combination will allow us to provide more customers much more areas than in the past. We shall additionally take advantage of significant run-rate synergies and robust cash flows that will enhance our power to pursue expansion plans into the Latin American region, which we expect you’ll be our main shop development automobile,вЂќ Wessel concluded.
вЂњIn addition to combining two complementary companies, First Cash to our merger includes two companies having a provided commitment to supplying appealing services and products, solutions and solutions for under-banked and value-conscious consumers,вЂќ said Brent Stuart, money America President and leader Officer. вЂњAll of us at money America are delighted to partner with First money that we believe will drive value for our shareholders and the customers we serve,вЂќ Stuart concluded as we enter into this new chapter for our company.
Dan Feehan, Executive Chairman of money America, stated, вЂњBoth businesses have actually strong brands, broad market existence and teams of skilled individuals, that your combined business will build on to recapture the significant upside this partnership produces. It is an opportunity that is exciting re-define leadership within our industry.вЂќ
FirstCash a platform that is strong Experienced Management; Well placed for development and Value Creation
- Successful Leadership Team FirstCash would be led with a proven leadership group that reflects the talents and abilities of both businesses, including a fruitful integration history involving nearly 450 shop purchases since 2013. Mr. Feehan will act as Non-Executive Chairman, Mr. Wessel as Vice Chairman and ceo, and Mr. Stuart as President and Chief working Officer. Doug Orr, Executive Vice President and Chief Financial Officer of First money, will act as Executive Vice President and Chief Financial Officer of FirstCash. The combined companyвЂ™s board of directors may be made up of seven directors, three of who is likely to be designated by First money, three by Cash America and a First that is former Cash endorsed by money America.
- Scale and Geographic go The combined company may have operations in four nations, including almost 1,200 shops in the us, and 936 latin locations that are american will express 45% of FirstCashвЂ™s stores. Nearly all brand new store development is anticipated to stay in latin markets that are american. For a pro forma foundation, FirstCash might have quarter that is payday loans IN first LTM revenues of around $1.75 billion. Pawn operations will still be the main focus regarding the combined business, with 94% regarding the combined companyвЂ™s anticipated revenue mix originating from pawn-related product product sales and pawn solution costs.
- Immense Run-Rate Synergies The increased scale afforded because of the combination is anticipated to come up with roughly $50 million of annual run-rate synergies inside the very first two years following the closing associated with the transaction, mainly from efficiencies associated with technology platforms, finance and reporting functions, as well as other administrative functions.
- Considerably Accretive to profits evaluating standalone expectations, the deal could be 10% accretive to First CashвЂ™s expected profits per share in 2017 and 35% accretive to money AmericaвЂ™s expected 2017 earnings per share.
- Capital Returns to Shareholders FirstCash promises to get back money to investors via quarterly money dividend repayments and stock buybacks. While at the mercy of the approval associated with the combined companyвЂ™s board of directors, it’s anticipated that the latest business can pay an yearly money dividend of $0.76 per share, paid quarterly, which can be roughly 50% more than First CashвЂ™s present dividend policy and roughly 100% more than money AmericaвЂ™s present dividend policy.
- Strong income and Financial Flexibility The combined companyвЂ™s pro forma robust money flows and stability sheet give you the monetary power to aid proceeded expansion into Latin US markets along with a return of money to investors through money dividends and buybacks. FirstCashвЂ™s strong credit profile is anticipated to result in reduced long-lasting funding costs.