FirstCash Finalizes Ramsdens Takeover
FirstCash sweetens Ramsdens takeover bid to £232m, final offer recommended by board
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Key Points
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Financing package for the Ramsdens deal includes drawing on FirstCash's U.S. revolving unsecured credit facility to fund the acquisition, with a backstop provided by a bridge loan facility of up to £239 million. Jefferies Finance LLC is acting as the backstop financier under an amended agreement.
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Irrevocable commitments and liner of intent: Bidco has already secured irrevocable undertakings from Ramsdens directors holding about 4.09% of issued share capital and letters of intent covering roughly 13.16% of issued capital.
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Premiums and dividend mechanics: The revised offer pays 675p per Ramsdens share in cash plus up to 9p per share in already-declared dividends (6p interim and 3p special), potentially lifting the total value to 684p per share if completed before the dividends are paid.
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Valuation progression: The initial terms valued Ramsdens at up to 609p per share (about £206m on a fully diluted basis), with a pre-IFRS16 enterprise value of around £203m; the revised terms lift the value to as much as 684p per share (about £232m fully diluted).
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Ramsdens trading outlook referenced in the update: Ramsdens raised its forecast for year to 30 September 2026 to a profit before tax of £32m–£35m, with the gold price remaining elevated and demand for pawnbroking loans described as robust.
US pawnbroker FirstCash Holdings has raised its takeover offer for UK rival Ramsdens Holdings to 675 pence per share in cash, plus up to 9 pence in already-declared dividends — bringing the total potential value to 684 pence per share and valuing the Teesside-based firm at about £232 million on a fully diluted basis, according to Yahoo Finance UK. The revised offer is labeled final unless a competing bid emerges.
Ramsdens shares jumped 13.6% on the news, Yahoo Finance UK reported. The company's board unanimously recommended the deal. The revised offer marks a significant step up from the initial bid, which valued Ramsdens at up to 609 pence per share — about £206 million.
How the New Offer Stacks Up Against the Old One
FirstCash's original proposal topped out at 609 pence per share, with a pre-IFRS16 enterprise value of around £203 million. The revised terms lift that ceiling to 684 pence per share and push the fully diluted valuation to roughly £232 million, according to Business Live. That is a 49% premium to Ramsdens' share price on June 22 — the day before FirstCash first made its approach public, Yahoo News UK reported.
The 684 pence total only applies if the deal closes before Ramsdens pays its already-declared dividends — a 6 pence interim dividend and a 3 pence special dividend. If those dividends are paid first, the cash consideration rises to cover the shortfall, keeping the total value the same.
Shareholders and the Board Back the Revised Deal
The improved terms came after extensive talks with Ramsdens shareholders, AOL UK reported. FirstCash has already locked in support covering about 17% of Ramsdens' issued share capital. Directors holding roughly 4.09% of shares have given irrevocable commitments to vote in favor. A further 13.16% of shares are covered by letters of intent.
Ramsdens' board unanimously recommended the scheme. The deal will be approved through a court-sanctioned scheme of arrangement, which also requires sign-off from the FCA and CMA, according to TradingView.
FirstCash Tapping US Credit Lines to Fund the Deal
FirstCash plans to finance the acquisition by drawing on its US revolving unsecured credit facility. A bridge loan of up to £239 million provides a backstop if needed. Jefferies Finance LLC is acting as the backstop financier under an amended agreement.
That financing structure means the deal does not depend on FirstCash raising fresh equity. The US revolving credit facility is already in place, lowering the execution risk for Ramsdens shareholders voting on the scheme.
Ramsdens' Strong Trading Makes It an Attractive Target
Ramsdens recently raised its profit forecast for the year to September 30, 2026. The company now expects profit before tax of between £32 million and £35 million. A high gold price has boosted its pawnbroking and precious metals business, and demand for pawnbroking loans is described as robust.
FirstCash already operates one of the largest pawn lending networks in the US and Latin America. Adding Ramsdens would give it a meaningful foothold on UK high streets, where Ramsdens runs a combined pawnbroking and foreign exchange retail business, according to Business Live.
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