Thursday, Sept. 9, 2004 | 11:12 a.m.
Cash America International Inc. said Wednesday it will purchase Las Vegas-based SuperPawn, the largest privately owned pawn operation in the United States, for $125 million in cash and stock.
SuperPawn has 21 stores in the Las Vegas area, as well as stores in Reno, Phoenix, Seattle and San Diego. The purchase, to be finalized in 90 days, gives Fort Worth, Texas-based Cash America its initial entry into those markets.
SuperPawn reported total pawn loans, as of June 30, of $25.4 million with a heavy emphasis on jewelry lending and retail sales and for the 12-month period ended June 30. It reported total revenue of $67 million. SuperPawn also recently introduced a cash advance business at its locations.
Steven Mack, owner of SuperPawn, could not be reached for comment.
In a separate transaction, Cash America sold its two European subsidiaries for about $128 million.
"The combination of sale and purchase transactions allows Cash America to focus exclusively on our growth opportunities in the United States," Daniel R. Feehan, chief executive and president of Cash America, said in a statement. "We now believe the growth opportunities for both our pawn and short-term cash advance businesses are more plentiful and potentially more rewarding in the U.S. than any opportunities we find in Europe."
Steven Mack is brother to Las Vegas City Councilman Michael Mack, who in the past has promoted the business to City Hall employees via e-mail from his private e-mail address.
Cash America trades stock on the New York Stock Exchange.
Cash America shares fell 45 cents, or 1.83 percent this morning from Wednesday's closing price of $24.65.com
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