ATLANTA , April 1,
2022 PRNewswire/ -- The Aaron's Company, Inc.
("Aaron's") (NYSE: AAN), a leading technology-enabled, omnichannel
provider of lease-to-own and retail purchase solutions, today
announced the completion of its previously announced acquisition of
BrandsMart U.S.A. ("BrandsMart")
for $230 million in cash plus
customary closing adjustments.
"This is an exciting day as we welcome the BrandsMart team to
the Aaron's family. Together, we are well positioned to continue to
execute on Aaron's mission of providing consumers with easy access
to high quality products on affordable lease and retail purchase
options through a wider set of channels. We believe that the
consolidated business can deliver strong revenue and double-digit
annual adjusted EBITDA growth over the next five years and beyond,"
said Douglas Lindsay, Chief
Executive Officer of Aaron's.
In connection with the closing of the BrandsMart acquisition,
Aaron's replaced its existing $250
million unsecured revolving credit facility with a new
credit facility that includes an unsecured $375 million revolving credit facility and a
five-year $175 million unsecured term
loan. At closing, Aaron's had approximately $117 million of borrowings outstanding under its
revolving credit facility.
About The Aaron's Company
in Atlanta, The Aaron's Company, Inc. (NYSE: AAN) is a leading
omnichannel provider of lease-to-own and retail purchase solutions.
Aarons engages in direct-to-consumer sales and lease ownership of
furniture, appliances, consumer electronics and accessories through
its approximately 1,300 company-operated and franchised stores in
47 states and Canada, as well as its e-commerce platform,
Aarons.com. For more information, visit Aarons.com or
About BrandsMart U.S.A.
Headquartered in Fort Lauderdale, BrandsMart U.S.A. is one of the leading appliance and
consumer electronics retailers in the southeast United States and one of the largest appliance
retailers in the country with ten retail stores in Florida and Georgia and a growing e-commerce presence at
brandsmartusa.com. BrandsMart U.S.A. offers hundreds of name brands across
thousands of different items, including large and small appliances,
consumer electronics, computers, furniture, and home goods. For
more information, visit brandsmartusa.com.
Statements in this news
release regarding our business that are not historical facts are
"forward-looking statements" that involve risks and uncertainties
which could cause actual results to differ materially from those
contained in the forward-looking statements. Such forward-looking
statements generally can be identified by the use of
forward-looking terminology, such as "remain," "believe,"
"outlook," "expect," "assume," "assumed," and similar terminology.
These risks and uncertainties include factors such as (i) any
ongoing impact of the COVID-19 pandemic due to new variants or
efficacy and rate of vaccinations, as well as related measures
taken by governmental or regulatory authorities to combat the
pandemic; (ii) risks related to the disruption of management time
from ongoing business operations due to the acquisition; (iii)
failure to realize the benefits expected from the acquisition,
including projected synergies; (vi) failure to promptly and
effectively integrate the acquisition; (iv) the effect of the
acquisition on our operating results and businesses and on the
ability of Aaron's and BrandsMart to retain and hire key personnel
or maintain relationships with suppliers; (v) the risks associated
with our strategy and strategic priorities not being successful,
including our e-commerce and real estate repositioning and
optimization initiatives or being more costly than anticipated;
(vi) our ability to adjust pricing to offset, or partially offset,
inflationary pressure on the cost of our products and services;
(vii) supply chain delays and disruptions, including adverse
consequences to our supply chain function from decreased
procurement volumes and from the COVID-19 pandemic; and (viii) the
other risks and uncertainties discussed under "Risk Factors" in the
Aaron's Annual Report on Form 10-K for the fiscal year ended
December 31, 2021 and any subsequent
reports filed with the Securities and Exchange Commission.
Statements in this press release that are "forward-looking" include
without limitation statements with respect to Aaron's goals, plans,
expectations, projections regarding the expected financial benefits
and results of operations following the acquisition. Investors are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Except as required by law, Aaron's undertakes no obligation to
update these forward-looking statements to reflect subsequent
events or circumstances after the date of this press release.
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SOURCE The Aaron's Company, Inc.