Cash Converters Expands Australian Network with 14 Franchise Stores at 4.3x EBITDA
Cash Converters has expanded its Australian footprint by acquiring 14 franchise stores across key states, reinforcing its strategy to grow earnings and consumer lending.
- Acquisition of 14 Australian franchise stores completed in three transactions
- Total enterprise value of approximately $15.9 million funded from available cash
- Blended earnings multiple of 4.3x EBITDA, immediately accretive to earnings
- Expansion strengthens corporate store network in Queensland, New South Wales, and Victoria
- Strategy focused on profitable franchise acquisitions and loan portfolio growth
Strategic Expansion in Australia
Cash Converters International Limited (ASX – CCV) has taken a significant step forward in its Australian operations by acquiring 14 franchise stores through three separate transactions completed between May and August 2025. These acquisitions, spread across New South Wales, Queensland, and Victoria, come at a combined enterprise value of approximately $15.9 million and are fully funded from the company's available cash reserves.
The move aligns with Cash Converters’ broader strategy to consolidate its presence in Australia’s most populous regions, creating a contiguous network that enhances operational efficiency and customer reach. The company now operates 92 corporate and 61 franchise stores domestically, alongside its UK and New Zealand operations.
Financial Impact and Earnings Accretion
Acquired at a blended earnings multiple of 4.3 times EBITDA, these stores are expected to be immediately accretive to Cash Converters’ earnings. This suggests a disciplined approach to valuation and acquisition, focusing on profitable franchise stores that complement the existing corporate network. The acquisitions contribute to a total of 96 franchise stores purchased since 2021 across Australia, the UK, and New Zealand, underscoring a consistent growth trajectory.
CEO and Managing Director Sam Budiselik highlighted the strategic importance of these acquisitions, noting their role in expanding the company’s customer base and store segment earnings. He also emphasized the ongoing transformation of Cash Converters’ loan book towards longer-term, lower-cost lending solutions, which these store acquisitions are expected to support.
Broader Market and Sustainability Context
Cash Converters operates as a leading non-bank lender and second-hand goods retailer, with a commitment to sustainability and the circular economy. By expanding its retail footprint, particularly in repurposed luxury goods, the company is positioning itself at the intersection of consumer finance and sustainable retailing. This dual focus may appeal to investors looking for growth combined with responsible business practices.
While the announcement does not detail integration plans or individual store performance, the immediate earnings accretion and strategic geographic expansion suggest a positive outlook. The company’s ability to leverage its existing infrastructure and brand presence will be critical in realising the full benefits of these acquisitions.
Bottom Line?
Cash Converters’ latest acquisitions mark a decisive push to deepen market penetration and boost earnings, setting the stage for further growth in Australia’s competitive consumer lending and retail sectors.
Questions in the middle?
- How will Cash Converters integrate these franchise stores operationally to maximise synergies?
- What impact will these acquisitions have on the company’s consumer loan portfolio growth in the near term?
- Could competitive responses in key Australian markets affect future acquisition opportunities or margins?
