Grupo Elektra Successfully Completes Acquisition of Advance America
—Stockholders approve the transaction, which meets all closing conditions and required regulatory approvals—
—Acquisition generates strong growth perspectives in rapidly growing credit segment—
—Advance America reported EBITDA of more than US$120 million in 2011, and will be acquired for approximately US$780 million—
MEXICO CITY, April 23, 2012 /PRNewswire/ -- Grupo Elektra, S.A.B. de C.V. (BMV: ELEKTRA*; Latibex: XEKT), Latin America's leading financial services company and specialty retailer, announced today the successful completion of the acquisition of Advance America —a leading non-bank, short-term loan provider in the United States— under previously announced terms.
Advance America's stockholders, approved the transaction, which complies with all closing conditions and required regulatory approvals. The acquisition, which includes all outstanding shares and the repayment of the company's debt, was completed for approximately US$780 million.
Advance America is a widely recognized brand throughout the United States, noted for its high customer satisfaction levels, a qualified staff of professionals, strong track record of regulatory compliance and a commitment to community throughout the United States. The company provides affordable, reliable and convenient short-term credit to the financially underserved, through approximately 2,600 points of sale in 29 US states. Advance America grants about 10 million loans every year.
Advance America's revenue for 2011 was US$626 million, with EBITDA of US$123 million, resulting in a 20% EBITDA margin.
Grupo Elektra is considering the implementation of strategies to further improve the already successful operations of Advance America. Grupo Elektra also plans to generate significant synergies and strengthen Advance America's dynamic development, by implementing initiatives that have proven their efficiency in banking operations in Mexico, Guatemala, El Salvador, Honduras, Panama, Peru and Brazil.
The company considers this transaction in the United States to be timely given the current pricing of US financial sector assets. The acquisition of Advance America will increase and diversify Grupo Elektra's consolidated revenue, further strengthening its profitability and cash generation, and drive solid growth prospects.
About Grupo Elektra
Grupo Elektra (www.grupoelektra.com.mx) is Latin America's leading specialty retailer and financial services company focused on the underserved market. Grupo Elektra operates over 2,900 points of sale in Mexico, Brazil, Guatemala, Honduras, Peru, Panama, El Salvador and Argentina. Grupo Elektra also sells and markets its consumer finance, banking and financial products and services through Banco Azteca branches located in Mexico, Brazil, Panama, Guatemala, Honduras, Peru and El Salvador.
Grupo Elektra is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast-growing, and technologically advanced companies focused on creating shareholder value, contributing to build the middle class of the countries in which they operate and improving society through excellence. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. The companies include Azteca (www.irtvazteca.com), Azteca America (www.aztecaamerica.com), Grupo Elektra (www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx) and Grupo Iusacell (www.iusacell.com.mx). Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. However, the member companies share a common vision, values and strategies for achieving rapid growth, superior results and world-class performance.
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SOURCE Grupo Elektra, S.A.B. de C.V.