𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Ramsdens has agreed to be bought by rival US pawnbroking business FirstCash for £206 million.

The deal means that the firm will be taken off the Alternative Investment Market (AIM) and into new US ownership, nearly a decade since listing its shares on the London junior market.

Ramsdens shareholders will receive up to 609p per share under the offer, which represents a 35% premium to its latest closing price.

It values the business’s entire share capital at about £206 million, including dividend payments.

FirstCash is an international pawnbroking operator with around 3,300 sites across the US, South America and the UK, and is listed on the US’s Nasdaq stock market index.

It said acquiring Ramsdens’ 174 stores will help it grow in the UK market, particularly into areas across the north of England and Scotland where there is a greater presence.

It will gain the British firm’s pawnbroking business – through which people can take out a loan against the value of a piece of jewellery or watch – as well as its precious metals buying service, jewellery shop, and foreign exchange unit.

Ramsdens, which is based in Stockton-on-Tees in County Durham, has seen its earnings boosted by the rising price of gold this year.

The most recent spike occurred at the beginning of March following the escalation of conflict in the Middle East, with gold hitting around 5,400 US dollars (£4,081) an ounce.

Ramsdens said this encourages more people to come into shops to sell unwanted jewellery, which it can then sell on for a profit.

But the volatility of prices means its performance could weaken in the future, making the acquisition a good safety measure for shareholders, according to the business.

FirstCash said cost savings could be made by combining some head office and administrative functions.

Peter Kenyon, the chief executive of Ramsdens, said: “I am exceptionally proud of the group’s transformational growth since our Initial Public Offering (IPO) on AIM in February 2017.

“Less than a decade on, we have added 50 Ramsdens stores to the UK high street, created over 300 jobs and significantly grown our profit-before-tax.

“I remain highly confident that there are significant opportunities for further growth over the coming years.”

Ramsdens’ share price soared by about 30% following the announcement.