H&T Group PLC (AIM:HAT), the UK’s largest pawnbroker, has agreed to a £297 million takeover by American rival FirstCash.
The 661p a share deal closes a 19-year chapter as a publicly listed company.
Shareholders will receive 650p in cash and a final dividend of 11p, due in June.
The offer represents a 44% premium to H&T’s share price before the deal was announced and is being pitched as a chance for investors to cash out at a strong valuation.
H&T’s directors said they had received multiple proposals from FirstCash since December last year, eventually engaging in negotiations after a fourth offer came in at a “meaningful” uplift.
While the board maintains confidence in H&T’s ability to grow independently, it acknowledged the risks of doing so in a challenging environment, including uncertainty over gold prices, employment costs and UK consumer spending.
Chair Simon Walker said the offer “allows shareholders to realise their investment at an attractive price in cash” while providing the business with the backing of a well-capitalised international owner.
H&T runs 285 shops across the UK, offering pawnbroking loans, jewellery retail and foreign exchange services. Its core customers often lack access to mainstream credit and rely on short-term lending secured against personal items such as gold or watches.
FirstCash, listed in the US, has added over 1,300 stores to its network since 2017 and sees the acquisition as a springboard into a new market.
Chief executive Rick Wessel called H&T “the leading pawn operator in the United Kingdom” and said the deal would help unlock further growth across its global platform.
Founded in 1897 by Walter Harvey and Charles James Thompson, the pair opened the first shop in London.
By the time of their deaths in 1915, they had expanded the business to 19 locations.
Over the ensuing decades, H&T grew steadily, becoming a familiar presence on British high streets.