Thursday, September 09, 2004
Copyright © Las Vegas Review-Journal

Cash America will acquire SuperPawn for $125 million

Cash America International on Wednesday announced an agreement to buy SuperPawn, a Las Vegas-based chain of 41 stores, for $125 million in cash and stock.

SuperPawn has stores in Nevada, Arizona, California and Washington, and the transaction will give Fort Worth, Texas-based Cash America its first pawn shops in those states.

SuperPawn had $67 million in revenue for the six months ended June 30. The Las Vegas company reported $25.4 million in pawn loans. The company emphasizes lending on jewelry and retail sales. It recently introduced a cash advance business.

"We're excited that our company is becoming part of the largest pawn company in the world," said Bryan Waters, chief operating officer and president of Camco Inc., which does business as SuperPawn.

After the sale, SuperPawn owner Steve Mack will pursue his new business, ztrading Industries, which sells software for pawnshops and enables businesses to sell used goods through eBay's Internet auction service.

Mack plans to lease Cash America the software system that his company developed for evaluating pawned goods, monitoring inventory and handling other functions. He said ztrading also offers the so-called enterprise software to other pawn shop operators.

In addition, the company operates www.ztradingpost.com, which sells used merchandise for people on eBay. It's zdrop operation enables other businesses to sell goods for clients on the Internet. An unidentified 200-store chain in California is under contract, Waters said.

Waters will become chief executive officer of ztrading when the SuperPawn sale closes in two to three months. Mack will be chairman.

Mark Hachtel of SuperPawn will become regional vice president for Cash America.

The pawnshop chain will continue operating under the SuperPawn name and will retain its 500 employees, Waters said.

Las Vegas Councilman Michael Mack, Steve Mack's brother, is no longer associated with SuperPawn.

The family business traces its roots back to 1875 when Luis Makovsky opened for business in Seattle. Leon and Ester Mack re-established the business in the San Francisco area in 1925. Ron and Judy Mack, the third generation of pawnbrokers, moved to Reno in 1959. Steve Mack joined the family business in 1981 when there were three stores.

Cash America has stock trading on the New York Stock Exchange. It reported a 63 percent increase in net income to $7.3 million in the second quarter. Revenue was $115.8 million

Cash America shares rose $1.10, or 4.67 percent, Wednesday to close at $24.65.