Press Release
February 2, 2012

Holland & Knight Represents EZCORP, Inc. in Acquisition of Controlling Interest in Mexican Consumer Finance Company Crediamigo

Miami, FL –  February 2, 2012 - Holland & Knight represented EZCORP, Inc. (Nasdaq: EZPW), a leading provider of specialty consumer financial services, in connection with the company’s transaction to acquire a 60% ownership interest in Prestaciones Finmart, S.A. de C.V., SOFOM, E.N.R. (“Crediamigo”), a specialty consumer finance company headquartered in Mexico City. Crediamigo is one of the top three and fastest growing providers of payroll deduction loans in the country. The deal was finalized on Jan. 30.

Under the terms of the definitive agreement, EZCORP will pay $38.7 million in cash to the existing stockholders of Crediamigo and will contribute an additional $12 million to the capital of the company alongside $8 million that will be contributed by certain of the minority shareholders. This additional capital will be used to repay existing indebtedness and provide working capital. EZCORP will be obligated to pay the existing stockholders additional amounts on each of the first and second anniversaries of the closing if certain financial performance targets are achieved during 2012 and 2013.

Crediamigo enters into agreements with various employers that permit it to market non-collateralized loans to employees. Interest and principal payments are withheld by the employers through payroll deductions and paid over to Crediamigo. Crediamigo currently has 170 such agreements, mostly with Mexican governmental agencies and organizations, and has access to more than 3.5 million employees.

Working alongside EZCORP General Counsel Tom Welch, Holland & Knight’s team for EZCORP was led by partner Jose Sirven along with partners Emma Solaun and Frances Faigenblat and associates Aymee Valdivia, Maria Arango, and Liliana Farfan, and Mexico City partner Maria Eugenia Rios of Gallastegui & Lozano.

Related News and Headlines