Cash Converters International (ASX:CCV) has secured a £12 million growth funding facility from Lloyds Bank to support its expansion strategy in the UK.
The funding will be used to acquire 10 franchise stores, reinforcing the company's focus on increasing its corporate store network and boosting earnings.
The new finance facility, backed by attractive pricing and favourable terms, aligns with Cash Converters' ongoing objective of strategic expansion through franchise acquisitions.
The newly executed asset purchase agreement covers 10 stores currently operated by a franchise partner with a 19-store network across North West and Central England.
The total acquisition cost is approximately £7.5 million.
This marks the first transaction to be funded by the Lloyds facility and is expected to be earnings accretive.
Upon completion, Cash Converters will own 58 corporate stores and oversee an additional 134 franchise locations across the UK.
CEO and Managing Director Sam Budiselik expressed confidence in the partnership with Lloyds Bank, stating, "This new facility enables us to accelerate our stated ambition of acquiring franchise stores and to continue growing the contribution the UK business makes to our company’s earnings."