Herbert Smith Freehills has advised Cash Converters International Limited on its acquisition of Capital Cash Ltd, its largest franchise group in the UK.
Listed on the Australian Stock Exchange, Cash Converters is currently the master franchisor to 188 stores in the UK, of which Capital Cash is the largest group of stores, operating 42 franchise stores. Capital Cash has been operating in the UK for 20 years offering pawnbroking, buyback and retailing of second-hand goods.
The acquisition, for total consideration of approximately ÂŁ13.9 million, provides Cash Converters a corporate store footprint in the UK and an experienced management team who will continue to grow the Cash Converters business in the UK. Completion of the transaction is subject to certain conditions, including regulatory approval by the Financial Conduct Authority in the UK.
The London Corporate team was led by senior associate Laura Ackroyd and Head of Global M&A Gavin Davies supported by senior associate Imogen White and associate Rhys Williams. Partner Marina Reason and associate Jed Wilsher provided financial services regulatory advice. The firm has a long-standing relationship with Cash Converters in Australia through partners Peter Butler and Philip Podzebenko.
Laura Ackroyd commented:
“We are pleased to have supported Cash Converters on this strategic acquisition which enables them to continue building their brand and growing their network of stores in the UK. This is yet another example of our strong global network and capabilities in providing clients with seamless advice in cross-border M&A transactions.”
Peter Waddell, Head of Legal at Cash Converters commented:
“Cash Converters is excited to expand its corporate network into the UK and has been strongly supported by the exceptional team at Herbert Smith Freehills. Despite the challenges presented by multiple time zones and different jurisdictions, the team worked closely and tirelessly with us to achieve a great outcome.”
