Atlanta-based Aaron's Co. (NYSE: AAN) announced Thursday is plans to acquire Fort Lauderdale, Florida-based appliance and consumer electronic big-box retailer BrandsMart USA for $230 million in cash. Aaron’s, a lease-to-own retailer for furniture, home appliances and consumer electronics, said it plans to close on the acquisition in the second quarter of 2022.
“The acquisition is expected to provide meaningful value-creation opportunities, which include leveraging Aaron's lease-to-own expertise to provide BrandsMart customers enhanced payment options and offering a wide selection of BrandsMart's product assortment to millions of Aaron's customers,” Aaron’s CEO Douglas Lindsay said.
Established in Atlanta in 1955, Aaron's currently has approximately 1,300 company-operated and franchised stores in 47 states and Canada. The company currently operates 77 stores in Georgia and 83 stores in Florida, according to its website. Both companies also operate e-commerce divisions.
“We believe the acquisition of BrandsMart will expand our addressable market and create an additional platform for accelerated growth,” Lindsay added. A total of four banks including Truist Bank, Bank of America, JPMorgan Chase Bank and Citizens Bank are providing a $200 million loan to Aaron’s to finance the deal.
For the 12 months ended December 25, BrandsMart generated $757 million in revenue and adjusted earnings of $46 million, according to the announcement. For perspective, the company reportedly had $850 million in revenue in 2005 (with seven stores) with Perlman telling technology publication TWICE earlier that year that his company accounted for 2.5 percent of all big screen TV sales in the country.
BrandsMart first entered the Atlanta market in 2004 with their Doraville store which was later followed by additional outposts in Kennesaw (2005), Stockbridge (2006) and Buford (2009). The company closed both their Kennesaw and Buford stores in 2014 with the former Kennesaw store sold to Kennesaw State University and the former Buford store reopening as Floor & Decor. San Jose, California-based Fry's Electronics, once a rival of BrandsMart, closed all of their stores in early 2021 including one remaining Atlanta area store in Milton.
Following the sale, BrandsMart USA will continue to be based in Fort Lauderdale and report to Aaron’s President Steve Olsen.
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