Cash America 2014 Annual Report Download - page 113
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
98
4. Acquisitions and Divestitures
Acquisitions
Goodwill arising from the acquisitions discussed below consists largely of the synergies and economies of
scale expected from combining the operations of the Company and the pawn lending locations acquired. All
goodwill from the following acquisitions, which were completed prior to the Company’s change in 2014 to a one-
segment structure, impacted the Company’s retail services segment. All goodwill associated with these acquisitions
is expected to be deductible for tax purposes.
Acquisition of 34 Pawn Lending Locations in Georgia and North Carolina
In December 2013, the Company completed the acquisition of substantially all of the assets of a 34-store
chain of pawn lending locations in Georgia and North Carolina (31 locations in Georgia and three locations in North
Carolina) owned by PawnMart, Inc. The aggregate purchase price for the acquisition was approximately $61.1
million, of which $0.5 million was paid in 2014. The acquisition price was paid in cash and funded by available
cash and borrowings under the Company’s line of credit. The Company incurred approximately $0.6 million of
acquisition costs related to the acquisition, which were expensed.
The allocation of the purchase price for this acquisition is as follows (dollars in thousands):
Pawn loans $10,510
Merchandise acquired
3,695
Pawn loan fees and service charges receivable
1,639
Property and equipment
2,631
Goodwill
35,190
Intangible assets
6,834
Other assets
1,262
Other liabilities
(218
)
Customer deposits
(426
)
Net assets acquired $61,117
Cash consideration payable as of December 31, 2013
(500
)
Total consideration paid for acquisition, net of cash acquired, as of December 31, 2013
60,617
Cash paid in 2014 related to holdbacks
500
Total cash paid for acquisition $61,117
Acquisition of 41 Pawn Lending Locations in Texas
In August 2013, the Company completed the acquisition of substantially all of the assets of a chain of pawn
lending locations in Texas that included 41 operating locations and the rights to one additional Texas pawn lending
location (that was under construction but not open for business at the time of the acquisition), all of which were
acquired from TDP Superstores Corp. and operated primarily under the name “Top Dollar Pawn.” The aggregate
consideration paid for the acquisition was approximately $103.7 million. The acquisition price was paid in cash and
funded by available cash and borrowings under the Company’s line of credit. The Company incurred approximately
$0.4 million of acquisition costs related to this transaction, which were expensed.