CommunityChoice Financial Inc.'s indirect units signed an omnibus asset andequity swap agreement with QCHoldings Inc. and QC Financial Services Inc.
The indirect subsidiaries are Checksmart Financial Co., CashCentral of Mississippi LLC, Buckeye Check Cashing of Alabama LLC, Buckeye CheckCashing of Arizona Inc. and Buckeye Check Cashing Inc.
Under the swap agreement, Community Choice Financial and itssubsidiaries would acquire all outstanding equity interests of QC FinancialServices of California Inc. and certain assets in Ohio, Mississippi, Arizonaand Alabama from QC. In return, QC would acquire all outstanding equityinterests in Buckeye Check Cashing of Illinois LLC, Buckeye Check Cashing ofKansas LLC, Buckeye Title Loans of Kansas LLC, Buckeye Check Cashing ofMissouri LLC, Buckeye Title Loans of Missouri LLC, Buckeye Check Cashing ofUtah Inc. and Buckeye Title Loans of Utah LLC from Community Choice Financial.
The swap agreement does not involve any other considerationby each of the parties, other than customary post-closing adjustments. Theparties concluded that the net value of the equity interests and other assetsexchanged are substantially equal.
In connection with the swap agreement, certain of theparties have reached a reciprocal transition services agreement that requirescertain transition services to be provided for a limited period of time.
The transaction was consummated effective July 1.