Cash Converters International Limited (ASX:CCV) will team up with one of the largest pawn shop operators in the world called EZCORP to launch Cash Converters in South America & Mexico.
The second-hand goods retailer says it will hold a 20 per cent interest in the joint venture through a subsidiary company.
In return Cash Converters will grant a master licence to the JV for Latin America and provide information technology services, training and management support.
EZCORP already have an established presence in Mexico and will inject $US3.6 million in return for its 80 per cent stake in the JV.
Cash Converters says the JV is not expected to be a material contributor in the short term but the company sees strong growth potential in the region over the next five to 10 years.
Cash Converters posted a net profit of $7.3 million in the first half of the 2014 financial year.
