Cash Converters South America & Mexico expansion

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Last Updated: 28/02/2020 11:23 AM

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.