Holland & Knight Advises EZCORP on Major Latin America Expansion
The company will now operate in Guatemala, El Salvador, Honduras and Peru
AUSTIN, Texas (Oct. 16, 2017) — Holland & Knight advised Austin, Texas-based EZCORP, Inc. (Nasdaq: EZPW), a leading provider of pawn loans in the United States and Mexico, on its acquisition of GuatePrenda – MaxiEfectivo (GPMX) for $53.4 million. An additional $2.25 million will be paid based on the performance of the business. The deal closed on Oct. 6.
GPMX owns and operates 112 pawn stores located in Guatemala (72 stores), El Salvador (17 stores), Honduras (12 stores) and Peru (11 stores). With this acquisition, EZCORP now has a total of 871 pawn stores, including 513 in the U.S. and 358 in Latin America.
“The GPMX acquisition is our largest pawn acquisition to date in terms of store count,” said Stuart Grimshaw, EZCORP’s chief executive officer. “It significantly expands our store base into Latin American countries outside of Mexico and will be immediately accretive to our earnings. With a high-quality management team in place and the opportunity to implement EZCORP’s systems and best practices, GPMX provides a platform for significant further growth in the region.”
Holland & Knight Partners Jose Sirven and Emma Solaun and Associates Henry Roque and Kendall Wilson served as U.S. counsel to EZCORP and worked alongside chief legal officer Thomas Welch and deputy general counsel Ellen Bryant. EZCORP co-counsel included Arias Law (Guatemala, El Salvador, Honduras and Panama), Conyers Dill & Pearman (BVI) and Estudio Muñiz (Peru).
The seller was represented by Harper Meyer (U.S.), Consortium Legal (Guatemala, El Salvador, Honduras), Philippi Prietocarrizosa Ferrero DU & Uría (Peru) and Galindo, Arias & López (BVI and Panama).