Cash Converters buys more Aust stores

Cash Converters International has announced it has acquired 13 franchised stores in the eastern states for $21.9 million.

The stores in Queensland, New South Wales, South Australia and Victoria were purchased from existing franchisees.

The purchase price included $6.8 million in tangible assets and represented an EBIT multiple of 3.7 times.

Cash Convertors now owns 71 stores, 39 in Australia and 32 in the UK.

See full company statement below:

Cash Converters International Limited ('the Company') is pleased to announce that it has contracted to acquire 13 franchised stores in Australia, comprising
eight in Queensland, two in New South Wales, two in South Australia and one in Victoria.

The 13 stores were purchased from existing franchisees for a total price of $21.9 million, which included tangible assets of $6.3 million.

The acquisition price represents an EBIT multiple of 3.7 times.

The acquisition of these stores is anticipated to increase the Company's EBIT by approximately $5.8 million in the first full year of ownership.

These acquisitions take the total number of stores owned by the Company to
71 stores - 39 in Australia and 32 in the UK.