Business
EZCORP Increases Investment in Florida and Caribbean; Expands Pawnbroking Footprint to Include Luxury Offerings
AUSTIN, Texas--(BUSINESS WIRE)-- EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawnbroking services in the United States and Latin America and retailer
About this update from Ezcorp, Inc.
[{"type":"text","content":" AUSTIN, Texas--(BUSINESS WIRE)--\nEZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawnbroking services in the United States and Latin America and retailer of pre-owned, name-brand merchandise, today announced two investments that highlight its continuing initiatives to expand its geographic footprint and broaden its pawnbroking offerings.\n\nThe Company recently increased its investment in Founders One, LLC, a private company that owns a majority interest in Simple Management Group, Inc. (SMG). This increased investment (comprised of a $15 million preferred equity contribution and a $15 million loan), along with other third-party financing secured by SMG, was used by SMG to acquire 100% of the outstanding capital stock of FFI Holdings, Inc., which owns 52 pawnbroking stores in Florida and Puerto Rico operating under the “La Familia” or “Family Financial” brand. That acquisition was completed on December 2, 2022, and with it, SMG now owns and operates a total of 73 pawnbroking stores (42 in the Caribbean and 31 in Florida). Additional information about the Company’s increased investment in Founders One can be found in its Current Report on Form 8-K, dated December 2, 2022, filed with the Securities and Exchange Commission.\n\nEZCORP also recently acquired a luxury pawnbroking business in Las Vegas operating under the name “Max Pawn” and established a joint venture with Michael Mack, the former owner of Max Pawn. The joint venture will focus on the luxury goods space in Las Vegas and other selected markets across the U.S. In connection with the acquisition, Mr. Mack has joined EZCORP to lead the Company’s new Luxury Pawn Division.\n\n“We continue to execute on exciting inorganic strategic opportunities to expand our core pawnbroking business in both existing and new geographic regions. Our increased investment in Founders One gives us enhanced exposure to the strategically important Caribbean region along with increased exposure to the Florida market,” said Lachie Given, Chief Executive Officer of EZCORP. “Additionally, our new Luxury Pawn Division will significantly enhance our existing pawnbroking offerings by providing dedicated and targeted focus on higher-end products in order to serve more customers, in more places, and in more categories. Together, these new investments strengthen and expand our pawnbroking offerings an...