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8-K - FORM 8-K - DFC GLOBAL CORP. | w81036e8vk.htm |
EX-2.1 - EX-2.1 - DFC GLOBAL CORP. | w81036exv2w1.htm |
Exhibit 99.1
NEWS RELEASE
Contact: Dollar Financial Corp
Financial Dynamics
Julie Prozeller
(212) 850-5600
Financial Dynamics
Julie Prozeller
(212) 850-5600
FOR IMMEDIATE RELEASE
DOLLAR FINANCIAL CORP CONSUMMATES PREVIOUSLY ANNOUNCED
ACQUISITION OF SEFINA, THE LEADING PAWN LENDING BUSINESS IN
SCANDINAVIA
ACQUISITION OF SEFINA, THE LEADING PAWN LENDING BUSINESS IN
SCANDINAVIA
BERWYN, Pennsylvania, December 31, 2010 Dollar Financial Corp (NASDAQ:DLLR News), a
leading international diversified financial services company serving primarily unbanked and
under-banked consumers for over 30 years, today announced that its wholly owned U.K. subsidiary,
Dollar Financial U.K. Ltd., has completed the acquisition of Sefina Finance AB, a leading
Scandinavian pawn lending business with headquarters in Stockholm, Sweden. Sefina, which has more
than a 125 year operating history, is the market leader in the region providing pawn loans
primarily secured by gold jewelry, diamonds and watches, through its 16 store locations in Sweden
and 12 stores in Finland.
The total cash consideration for the acquisition is approximately $73.0 million, of which $58.0
million was cash paid at closing with the remaining approximately $15.0 million of additional cash
to be paid in installments during calendar year 2011, and there is a contingent earn-out
arrangement based on the financial performance of the acquired business over the next two years.
The Company also assumed Sefinas existing working capital lines of credit associated with a number
of Scandinavian banks, which aggregated to approximately $60.0 million upon the closing of the
acquisition, are secured by the value of Sefinas pawn pledge stock, and have average interest
rates of approximately 4%. Including transition costs, the EBITDA contribution for the acquired
stores is expected to be approximately $6.0 million for the remainder of the Companys fiscal year
ended June 30, 2011. The Company anticipates it will update its earnings outlook for fiscal 2011
to include the Sefina acquisition and the related purchase accounting adjustments when it releases
its fiscal second quarter earnings results for the three months ending December 31, 2010.
Commenting on the acquisition, Jeff Weiss, the Companys Chairman and Chief Executive Officer,
stated, The expansion of our pawn lending business globally is a key element of the Companys
long-term growth strategy and is in keeping with our focus on the ever expanding ALICE (or Asset
Limited Income Constrained) demographic. There appears to be a significant on-going shift within
the more developed economies of the world
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towards service sector employment and lower paying jobs, as manufacturing and some other higher
paying occupations are off-shored to developing countries where labor is less expensive. As such,
the average wage rate for the ALICE demographic is continually shrinking against the rising tide of
higher costs for food, gasoline, health care and other basic necessities. As the number of people
like ALICE increase all around the globe, we are intently focused on expanding our set of products
and services and sales channel delivery platforms in existing and new markets to meet their growing
financial services needs, of which pawn lending is a key component.
About Dollar Financial Corp
Dollar Financial Corp is a leading international diversified financial services company primarily
serving unbanked and under-banked consumers and small business owners for over 30 years. Through
its retail storefront locations as well as by other means, such as via the Internet, the Company
provides a range of consumer financial products and services in seven countries (Canada, the United
Kingdom, the United States, the Republic of Ireland, Sweden, Finland and Poland) to consumers who,
for reasons of convenience and accessibility, purchase some or all of their financial services from
the Company rather than from banks and other financial institutions. The Companys products,
principally its short-term consumer loans, check cashing services, secured pawn loans and gold
buying services, provide customers with immediate access to cash for living expenses or other
episodic needs. The Company also offers high-value ancillary services, including Western Union
money order and money transfer products, electronic tax filing, reloadable VISA® and MasterCard®
debit cards, foreign currency exchange, and other services. In addition, through its branded
Military Installment Loan and Education Services, or MILES® program, the Company provides fee based
services to enlisted military personnel applying for loans to purchase new and used vehicles that
are funded and serviced under an exclusive agreement with a major third-party national bank.
At September 30, 2010, the Companys global retail operations consisted of 1,193 locations,
including 1,067 company-operated financial services stores and 126 franchised and agent locations,
conducting business primarily under the names Money Mart®, Money Shop®,
Insta-Cheques®, The Check Cashing Store®, and MoneyNow® in Canada,
the United Kingdom, the United States, the Republic of Ireland, and Poland. For more information,
please visit the Companys website at www.dfg.com.
Forward Looking Statement
This news release contains forward looking statements, including, among other things, statements
regarding the following: recent acquisitions; the Companys future results, growth, guidance and
operating strategy; the global economy; the effects of currency exchange rates on reported
operating results; the developing regulatory environment in Canada, the U.K., the United States,
and other countries; the impact of future development strategy, new stores and acquisitions;
litigation matters; and the performance of new products and services. These
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forward looking statements involve risks and uncertainties, including risks related to: the
regulatory environments; current and potential future litigation; the identification of acquisition
targets; the integration and performance of acquired stores and businesses; the performance of new
stores; the impact of debt financing transactions; the results of certain ongoing income tax
appeals; and the effects of new products and services on the Companys business, results of
operations, financial condition, prospects and guidance; and uncertainties related to the effects
of changes in the value of the U.S. Dollar compared to foreign currencies. There can be no
assurance that the Company will attain its expected results, successfully integrate any of its
acquisitions, or attain its published guidance metrics, or that ongoing and potential future
litigation or the various FDIC, Federal, state, Canadian, U.K. or foreign legislative or regulatory
activities affecting the Company or the banks with which the Company does business will not
negatively impact the Companys operations. A more complete description of these and other risks,
uncertainties and assumptions is included in the Companys filings with the Securities and Exchange
Commission, the Companys annual reports and Forms 10-Q and 10-K. You should not place any undue
reliance on any forward-looking statements. The Company disclaims any obligation to update any
such factors or to publicly announce results of any revisions to any of the forward-looking
statements contained herein to reflect future events or developments.
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