A high-profile player in the Charleston pawn shop business is changing hands in a $30 million all-cash deal.
Money Man said Tuesday it has struck an agreement to sell its 12 loan outlets to First Cash Financial Services Inc., an Arlington, Texas-based company that’s been on a buying spree this year.
“The Charleston area represents a new market in South Carolina for First Cash and will complement our existing six locations in Greenville, Columbia and Spartanburg,” First Cash CEO Rick Wessel said in a prepared statement. “Consistent with our core operational strategy, the new stores focus exclusively on pawn lending and related sales of pawn merchandise.”
The sale is expected to be completed by the end of the year, when all Money Man operations and earnings will be folded into First Cash.
The local chain’s stores had a combined $4.7 million in pawn loans and merchandise valued at $2.9 million as of Nov. 20, the buyer said.
The Texas company expects the newly acquired business will start contributing to its bottom line by early 2014. Wessel and other First Cash officals didn’t respond to phone calls seeking additional comment.
Money Man is known for its signature bright yellow and green buildings. The company is owned by John and Linda Derbyshire. They acquired Money Man’s predecessor business around 1991, when it had one pawn shop in Goose Creek.
“We believe this will be a wonderful opportunity for our employees to continue to serve the Charleston market and offers significant growth potential as First Cash expands their footprint in the South Carolina market,” the company said in a written statement Tuesday.
First Cash, a pawn and payday loan business that’s added 100 locations this year, announced the Charleston deal Monday without disclosing the seller’s identity.
The Derbyshires declined through a representative to comment Tuesday beyond their company’s statement.
Contact John McDermott at 927-5572.