H&T Group acquires Maxcroft Securities assets to expand pawnbroking business

In a significant move within the UK pawnbroking sector, H&T Group Plc, the nation’s premier pawnbroker and a distinguished retailer of high-grade new and pre-owned jewellery and watches, has officially announced its acquisition of certain assets of Maxcroft Securities Ltd for a total cash consideration of £11.3 million. This acquisition not only underscores H&T Group’s strategic expansion but also consolidates its position in the competitive pawnbroking industry.

The centerpiece of the acquisition is Maxcroft’s pawnbroking pledge book, valued at approximately £6.1 million, which includes interest accrued and after adjustments for required IFRS 9 provisions. Maxcroft, a venerable pawnbroking entity based in Essex with over 40 years of operational history, boasts a strong foundation in the market. The business’s main assets align closely with H&T Group’s existing operations, encompassing gold, jewellery, and watches, thereby ensuring a seamless integration into H&T’s portfolio. Moreover, the transaction brings aboard the expertise of five Maxcroft employees, enhancing H&T’s service quality and market reach.

Simultaneously, H&T Group Plc has secured an additional £25 million in financing from Pricoa Private Capital, the private capital division of PGIM, Inc., affiliated with Prudential Financial, Inc.’s global investment management business. This strategic financial infusion is earmarked for bolstering the future growth of H&T’s pledge book and for investments across its store portfolio, which is poised to further solidify the company’s market dominance.

Chris Gillespie, Chief Executive of H&T, expressed enthusiasm about the dual milestones, highlighting their pivotal role in the group’s ongoing effort to expand and diversify its core pawnbroking business and its commitment to investing in the store estate. The additional financing from Pricoa not only diversifies H&T’s funding sources but also reinforces its financial stability, enabling sustained growth and innovation in its service offerings.

The acquisition and additional financing are strategic steps by H&T Group Plc towards enhancing its service spectrum and market reach within the UK pawnbroking and retail sector. By integrating Maxcroft’s high-value pawnbroking pledge book and leveraging the additional financing for growth and investment, H&T Group is well-positioned to cater to a broader customer base, including business owners in need of larger value loans. These initiatives are expected to drive significant value for H&T Group’s stakeholders and contribute to the company’s long-term success in the competitive pawnbroking landscape.

In conclusion, H&T Group Plc’s strategic acquisition of Maxcroft Securities Ltd and the securing of additional financing from Pricoa Private Capital are pivotal developments that highlight the company’s commitment to growth, diversification, and service excellence in the UK pawnbroking industry. These moves not only strengthen H&T’s market position but also underscore its role as a key player in the financial services sector, dedicated to meeting the diverse needs of its customers through innovative and reliable financial solutions.