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FORT WORTH - FirstCash Holdings, Inc. (NASDAQ:FCFS) has completed its acquisition of H&T Group plc, the largest pawn store operator in the United Kingdom with 286 locations, the company announced Thursday.
The $383 million acquisition marks FirstCash’s entry into the European market and strengthens its position as a global leader in the pawn industry. With the addition of H&T’s stores, FirstCash now operates over 3,300 retail pawn locations globally with annualized pro forma revenues approaching $4 billion.
Under the terms of the deal, H&T shareholders received 650 pence per share in cash, equating to a total equity value of £289 million ($383 million). FirstCash also assumed H&T’s net debt of approximately £64 million ($85 million), funding the acquisition through its long-term revolving bank credit facility.
"We are extremely excited to welcome H&T to the FirstCash family," said Rick Wessel, CEO of FirstCash. "H&T’s market-leading position in the U.K. provides premier access to an attractive market, supported by a seasoned management and operations team."
The company expects the acquisition to be immediately accretive to earnings, with projected earnings per share accretion for the remainder of 2025 (August 14 through December 31) anticipated to be in the range of $0.20 to $0.25 per share, net of incremental borrowing costs. Analysts maintain a positive outlook, with three analysts recently revising earnings estimates upward, as reported by InvestingPro, which offers 8 additional valuable insights about FirstCash’s financial outlook.
FirstCash projects that H&T’s full-year 2025 financial metrics will include revenue between $315 million and $340 million, and net income between $35 million and $38 million.
With this acquisition, approximately 85% of FirstCash’s future earnings are expected to come from its pawn segments in the U.S., Latin America, and now the U.K., according to the company’s press release statement.
FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index and the Russell 2000 Index.
In other recent news, FirstCash Holdings, Inc. reported second-quarter adjusted earnings that surpassed analyst expectations, highlighting strong demand for pawn loans. The company posted adjusted earnings of $1.79 per share, exceeding the analyst estimate of $1.67, and achieved revenue of $830.6 million, beating the consensus estimate of $822.6 million. Additionally, FirstCash announced an 11% increase in its dividend, reflecting confidence in its financial performance. The company also completed its acquisition of H&T Group plc, the largest pawn store operator in the United Kingdom, for $383 million. This transaction marks FirstCash’s first entry into the European market, expanding its global presence to over 3,300 retail pawn locations. In another development, Texas Capital Securities initiated coverage on FirstCash with a Buy rating and a price target of $160.00. This rating was supported by FirstCash’s significant position in the pawn industry in the U.S. and Latin America. These developments underscore FirstCash’s strategic growth and strong financial performance.
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