RCapital sells Cash Generator in franchisee-led buyout

Under the GP's tenure, the business returned to a franchise-only model via the sale of corporate-owned stores to franchisees. It also sold loss-making stores and introduced a streamlined operational structure.

The GP said in a statement that the company, which had been in a distressed situation at the time of the original deal, had now returned to profit.

Following the process, the business is now owned by 54 franchisees.

Previous funding
RCapital supported the management buyout of Cash Generator from US trade vendor CNG in 2017. Financial details of the deal were undisclosed, though RCapital typically invests £200,000-20m in businesses with turnovers of £5-200m.

Company
Founded in 1994, Edinburgh-headquartered Cash Generator is a pawnbroker operating 110 stores across the UK and an e-commerce platform. The business purchases and sells consumer goods including gold, in addition to services including cheque cashing, foreign exchange services and international money transfers. It has a headcount of around 500.

People
RCapital – Phil Emmerson (chief operating officer).
Cash Generator – Graeme McKinnon (managing director).

Advisers
Vendor – Shakespeare Martineau (legal).
Acquirer – FRP Advisory (corporate finance); Gateley (legal); Squire Patton Boggs (legal); PHD Property Advisory (property due diligence).
Company – Harper Macleod (legal).

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• Topics
• Exits
• UK / Ireland
• Financials
• United Kingdom
• RCapital
• Gateley
• Squire Patton Boggs