24 October, 2017 Peru

Eight firms advise on US pawn loan provider acquisition

Banking, Finance and Capital Markets

Holland & Knight LLP in Miami and Tampa, the San Salvador, Guatemala City, Tegucigalpa and Panama City offices of Arias Law, Muñiz Ramírez Pérez-Taiman & Olaya in Lima and Conyers Dill & Pearman in Tortola have advised leading US pawn loan provider EZCORP on its US$53 million multi-jurisdictional acquisition of Guatemalan pawn shop company GuatePrenda-MaxiEfectivo (GPMX).

Harper Meyer in Miami, Consortium Legal in Guatemala City, Philippi Prietocarrizosa Ferrero DU & Uría in Lima and Galindo, Arias & López in Panama City advised GPMX.

The deal includes an additional US$2.25 million which will be paid by EZCORP based on the future performance of the business.

EZCORP is based in Austin, Texas and provides pawn loans in both the US and Mexico. This acquisition is its biggest to date and significantly expands its presence in Latin America. It takes on GPMX’s 112 pawn stores in Central and South America – 72 stores in Guatemala, 17 in El Salvador, 12 in Honduras and 11 in Peru. EZCORP now owns 871 pawn stores, including 358 in Latin America.

Camira Administration Corp was previous owner of GPMX. EZCORP became owner of GPMX on 4 October when the former parent company of Camira Administation Corporation, Black Icebreaker Corporation, sold the BVI holding company Camira to EZCORP. Ownership of GPMX then transferred to EZCORP in this transaction.

At the time of acquisition, GPMX owed some US$6.6 million to affiliates of Black Icebreaker, which must be paid after closing on 6 October.

Counsel to EZCORP

Holland & Knight LLP

Partners Jose Sirven and Emma Solaun, and associate Henry Roque in Miami, and associate Kendall Wilson in Tampa

Arias (El Salvador)

Partners Lilian Arias and Ana Mercedes Lopez, and associates Mario Lozano and Marcela Deras in San Salvador

Arias (Guatemala)

Partner Jorge Luis Arenales and associates Cynthia Soto and Ana Avila in Guatemala City

Arias (Honduras)

Partner Evangelina Lardizabal and associates Claudia Midence and Antonio Montes Rittenhouse in Tegucigalpa

Arias (Panama)

Partner Lisa Domínguez and associate Mayrolis Parnther in Panama City

Muñiz Ramírez Pérez-Taiman & Olaya

Partners Daniel Lovón and Gillian Paredes, and associates Raúl Alosilla, Guillermo Gonzales, Ronald Cross, Elard Dianderas and Andrea Chunga in Lima

Conyers Dill & Pearman

Partner Anton Goldstein and associate Marcus Hallan in Tortola

Counsel to GuatePrenda-MaxiEfectivo

In-house counsel – Andrés Galindo

Harper Meyer

Partners James Meyer and Ron Albert, and associate Natalie Balsinde in Miami

Consortium Legal (Guatemala City)

Partner Rafael Alvarado Riedel and associate Javier Santizo in Guatemala City

Philippi Prietocarrizosa Ferrero DU & Uría

Partners Guillermo Ferrero and Ignacio López de Romaña, and associates Omaira Zambrano and Fiorella Ruiz in Lima

Galindo, Arias & López

Partner Diego Herrera Dutari and associate Raul Morales in Panama City

Source: Latin Lawyer