In a significant corporate manoeuvre, Clarke Willmott LLP has facilitated the sale of Capital Cash Limited to Cash Converters UK.
- The transaction, valued at £13.9 million, marks a strategic expansion for Cash Converters into corporate operations across the UK.
- Capital Cash, the largest UK franchisee of Cash Converters, operates 42 stores offering various second-hand goods and services.
- Completion of the deal awaits regulatory approval, with expectations for it to finalise by early summer.
- This transaction underscores Clarke Willmott’s role in advancing strategic growth within the retail sector.
In a noteworthy development in the retail and legal sectors, Clarke Willmott LLP has played a pivotal role in advising on the sale of Capital Cash Limited to Cash Converters UK, marking a substantial shift in the operational dynamics of second-hand retailing in the UK. The transaction is valued at an impressive £13.9 million, reflecting the significance of the deal in strengthening Cash Converters’ market position.
Capital Cash Limited stands as the largest franchisee of Cash Converters in the UK, managing a network of 42 stores across England. These stores specialise in pawnbroking, buyback, and the retailing of second-hand goods, positioning Capital Cash as a key player in the market. The acquisition provides Cash Converters with a direct corporate footprint, leveraging an experienced management team to drive future growth.
Cash Converters, which is listed on the Australian Stock Exchange, acts as the master franchisor to a network of 188 stores in the UK and a total of over 700 stores worldwide. This acquisition not only enhances its operational control within the UK but also aligns with its broader strategic objectives of expanding corporate operations.
The conclusion of the transaction is contingent upon securing regulatory approval from the UK’s Financial Conduct Authority. The announcement of the contract exchange was publicised on the Australian Securities Exchange Ltd (ASX), with the deal anticipated to close by early summer, marking a new chapter in Cash Converters’ UK operations.
The legal team at Clarke Willmott, led by corporate partner Richard Swain from their Southampton office, was instrumental in navigating the complexities of the deal. The team, including corporate solicitor Bryony Warren and other specialists, ensured a seamless process, as reflected in the satisfaction expressed by Capital Cash’s leadership.
Carl Murray, managing director of Capital Cash, is set to become the CEO of Cash Converters UK as part of this acquisition. Murray acknowledged the longstanding relationship with Richard Swain and praised the team’s professionalism and diligence throughout the transaction.
International law firm Herbert Smith Freehills provided legal representation for Cash Converters, highlighting the collaborative efforts involved in this high-profile transaction. Clarke Willmott’s involvement exemplifies their expertise and capability in handling significant corporate deals across the UK.
This transaction highlights the influential role of legal expertise in facilitating strategic business expansions.
