Dollar Financial Corp., which provides financial services to low- and middle-income customers, said Monday it bought six stores from a franchisee in southeast England for $1.7 million.
The purchase price does not include additional payments for cash in the stores at the time the transaction closed and payments the company is making for a portion of the pawn pledge portfolio. The stores are expected to bring $1.3 million in revenue in the first year following the acquisition, the company said, for pretax income of $500,000.
Don Gayhardt, president of Dollar Financial, said the purchase is part of the company’s strategy to diversify into new markets. The company will look to buy franchisee’s stores “wherever the opportunity presents itself,” he said in a statement.
Last month, the company bought 13 stores from franchisees in Western Canada for $16.8 million.
The company operates check-cashing, short-term loans and other financial services through 1,330 stores under the Money Mart, Loan Mart and We The People names.
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