H&T Group PLC (AIM:HAT) said it was acquiring Essex pawnbroker Maxcroft for £11.3 million as it announced £25 million of new funding that will be used to finance further expansion.
The takeover includes the purchase of Maxcroft's pledge book, primarily collateral such as gold, jewellery and watches, valued at around £6.1 million.
With a legacy spanning over four decades, the business operates from one store in Ilford employing five people that also offers foreign exchange services.
In the same announcement, H&T also said it had secured an additional £25 million in financing from Pricoa Private Capital, part of PGIM Inc.
It comprises £10 million in secured notes at an 8.37% fixed rate due in February 2029 and £15 million in secured notes at an 8.43% fixed rate due in February 2031.
H&T said it will help it expand its pledge book as well as finance investment in its store portfolio.
CEO Chris Gillespie said: "We are very pleased to be able to announce these two transactions, both of which underline the group's focus on growing and broadening its core pawnbroking business and investment in the store estate.
"We are also delighted to have further diversified and enhanced the group's funding arrangements through the relationship with Pricoa."
H&T will unveil its full-year results on March 12.