Ramsdens, a North East pawnbroking business that began in a single shop in Stockton in May 1987, has been acquired by US firm FirstCash Holdings in a deal worth £206m. The company now operates 175 shops across the UK and has diversified into precious metals, travel money, and jewellery retail.
Deal details and shareholder offer
Under the terms of the acquisition, each Ramsdens shareholder will receive up to £6.09 in cash per share. The deal was announced on the Stock Exchange, with Ramsdens' board recommending the offer after independent advice from Cavendish. Simon Herrick, non-executive chair of Ramsdens, noted that the offer represents a 35% premium to the current share price, which he said had not fully reflected the company's profit growth.
Company growth and milestones
Since its flotation on AIM in February 2017, Ramsdens has added 50 stores to its network, created over 300 jobs, and significantly grown its profit before tax. The company also recently earned a place in The Sunday Times Best Places to Work list, recognising its positive workplace culture and benefits for over 800 employees. In the North East alone, Ramsdens has more than 25 stores, including locations in Newcastle, Gateshead, Sunderland, and Durham.
FirstCash's strategic move
FirstCash Holdings, a Texas-based pawnbroker with over 3,300 locations in the US, Latin America, and the UK, entered the UK market last year through its acquisition of H&T. Rick Wessel, CEO and Vice-Chairman of FirstCash, said: “We are excited to add Ramsdens, as part of the global FirstCash family. This transaction demonstrates our continued execution of FirstCash’s long-term growth strategy.” He expressed confidence in Ramsdens' continued success given its proven track record.
Leadership perspectives
Peter Kenyon, CEO of Ramsdens, said: “I am exceptionally proud of the group’s transformational growth since our Initial Public Offering on AIM in February 2017. Less than a decade on, we have added 50 Ramsdens stores to the UK high street, created over 300 jobs and significantly grown our profit before tax.” He added that FirstCash is an internationally established sector leader and expressed confidence in future growth opportunities.
