Pawnbroker H&T snapped up by US firm in another loss for London Stock Exchange
Texas-based FirstCash is to buy the UK’s largest pawnbroker, which has more than 270 shops across England, Scotland and Wales.
British pawnbroking chain H&T is to be bought by a US firm, in a deal which takes yet another company off the London Stock Exchange.
H&T said on Wednesday that it had accepted an offer from Texas-based FirstCash to buy the company for £297 million.
Founded in 1897, the UK’s largest pawnbroker has more than 270 shops across England, Scotland and Wales, and has already received several offers from FirstCash.
The most recent represents 661p for each H&T share, representing a 44% premium to the group’s closing share price on Tuesday.
H&T chief executive Chris Gillespie said the deal has a “compelling strategic rationale, bringing together two businesses with complementary offerings”.
“It’s clear to us that FirstCash has full appreciation of our capabilities, the dedication of our employees, commitment to the customer and with their backing and support, I am confident H&T will have an extremely bright future.”
FirstCash chief executive Rick Wessel said the deal “provides an entry into a significant new market, which we believe will unlock additional growth opportunities”.
Pawnbrokers are frequently seen as a proxy for how much financial strain households are under.
And H&T has enjoyed a booming trade of late, welcoming record new customer numbers in the final months of last year.
The cost of living crisis, sparked by rampant inflation through 2022 and 2023, has put pressure on consumers, pushing more people to turn to pawnbrokers.
FirstCash has more than 3,000 retail locations, mainly across the US and Latin America, and employs about 18,000 people.
Its acquisition of H&T marks yet another instance of a major UK-listed company leaving the London Stock Exchange, following the likes of tech firm Darktrace and Paddy Power-owner Flutter.
H&T chairman Simon Walker said: “Following careful consideration, the H&T Directors have unanimously concluded that they intend to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders.”