Cash Converters buys up new stores
SECOND hand goods specialist Cash Converters International has acquired four franchised stores in the region.
The company, which also offers pawn broking loans and personal finance, has bought the stores in Halifax, Keighley, Dewsbury and Scunthorpe.
In addition, two new corporate stores were opened in the UK in June.
The company opened its second store in Hull and a store in Accrington.
The four stores were purchased from existing franchisees for a total of £1.9m, which included assets of £550,000.
The acquisition price represents an EBIT (earnings before interest and tax) multiple of 4.7 times.
Cash Converters International is anticipated to increase the company’s EBIT by approximately £400,000 in its first full year of ownership.
The company now owns 59 stores – 27 in Australia and 32 in the UK.
