Ramsdens has agreed to a £203m acquisition offer from the US pawn store operator, FirstCash.

Under the deal, Ramsdens shareholders will receive £6.09 per share, comprising £6 per share in cash and permitted dividends of up to nine pence.

The offer represents a 35% premium on the UK firm’s closing share price yesterday.

FirstCash, which acquired H&T Group last year for £289m, said the acquisition would allow it to continue to expand its UK geographical footprint, with its presence mostly being in the South of England, while Ramsdens has stronger representation in the North and Scotland.

It added that the deal would also expand its presence in the UK and enhance its precious metals purchasing, jewellery retail and foreign exchange policies.

The UK firm stated that the offer value represents an opportunity for its shareholders to realise an immediate cash return at a "significant premium to the recent trading price".

Following the announcement, shares in Ramsdens increased by over 30% to a record price for the firm.

Investment director at AJ Bell, Russ Mould, concluded: "It is just over a year since the American firm launched a bid for another British pawnbroker-to-jeweller, H&T, and now it is back again, not least because Ramsdens comes on a lower valuation than last year’s target.
 
"Strong first-half results earlier in June enabled Ramsdens to upgrade profit forecasts for the year to September 2026 for the fourth time in five months. The shares reached a new all-time high but then stumbled as the gold price remained weak to provide FirstCash with what is clearly felt was an opportunity that was too good to miss.

"Even the £6.09-a-share cash-and-dividend offer puts Ramsdens on barely nine times earnings and a 4.4% forward yield. FirstCash must think Christmas has come early as it snaps up another strongly performing player in a fragmented market that is ripe for consolidation."

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