Shares in Ramsdens Holdings (AIM: RFX) surged 28% after the pawnbroker agreed to a recommended takeover by US-listed industry giant FirstCash in a deal valuing the company at up to £206 million.
Under the terms of the agreement, Ramsdens shareholders will receive up to 609p per share, comprising 600p in cash plus permitted dividends of up to 9p per share. The cash offer alone represents a 33% premium to Ramsdens’ share price before the takeover approach became public and stands 22% above the company’s previous record closing high.
The acquisition marks another significant step in FirstCash’s expansion strategy following its entry into the UK market through the acquisition of H&T last year. With more than 3,300 pawn stores across the United States, Latin America and the UK, FirstCash believes Ramsdens represents a highly complementary addition to its existing operations.
Ramsdens operates 174 stores across England, Scotland and Wales, offering pawnbroking services alongside jewellery retail, precious metals purchasing and foreign currency exchange. The company has also expanded its online presence in recent years.
Chairman Simon Herrick said the board believes the offer delivers compelling value for shareholders, noting that the company’s share price had failed to fully reflect strong earnings growth and multiple trading upgrades over the past year.
The company’s recent performance has been supported by elevated gold prices, a key driver of profitability for pawnbrokers. However, the board also acknowledged that any future decline in gold prices could create earnings headwinds.
Chief Executive Peter Kenyon highlighted Ramsdens’ growth since its AIM flotation in 2017, during which the company has expanded its estate by 50 stores and created more than 300 jobs.
The transaction has received unanimous support from the Ramsdens board, while directors holding approximately 4.13% of the company’s shares have already committed to vote in favour of the deal.
The acquisition will be implemented through a court-approved scheme of arrangement and is expected to complete during the second half of 2026, subject to shareholder and regulatory approvals.
For Ramsdens shareholders, the offer crystallises significant value at a premium valuation, while for FirstCash it strengthens its position as the largest publicly traded pawnbroking platform across North America, Latin America and the UK.
