Aaron’s to acquire appliance/electronics retailer BrandsMart
BrandsMart customers will soon have a new option for purchasing their appliances and computers.
Lease-to-own retailer Aaron’s has entered into an agreement to acquire BrandsMart U.S.A. for approximately $230 million in cash. Upon closing of the transaction, the BrandsMart business will report to Aaron's president, Steve Olsen. It will continue to be headquartered in Ft. Lauderdale, Fla.
Founded in 1977, BrandsMart is one of the leading appliance and consumer electronics retailers in the southeast U.S., with 10 stores in Florida and Georgia and a growing e-commerce business. The company offers a wide selection of brands and thousands of products, including large and small appliances, consumer electronics, computers, furniture and other home goods. For the twelve months ended December 25, 2021, BrandsMart generated revenues of $757 million.
The transaction is expected to result in a combined entity with annual revenues of more than $2.5 billion, 11,000 employees, and the ability to serve the full spectrum of prime and sub-prime customers, Aaron’s said in a statement.
"We are thrilled to announce our agreement to acquire BrandsMart, which we believe strengthens Aaron's ability to deliver on our mission of enhancing people's lives by providing easy access to high-quality products through affordable lease and retail purchase options,” said Douglas Lindsay. CEO, Aaron's, which operates approximately 1,300 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce site.
“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.”
Lindsay added that the acquisition of BrandsMart will expand Aaron’s addressable market and create an additional platform for accelerated growth. Aaron's expects to create a leading direct-to-consumer lease-to-own marketplace by offering its customers access to much of BrandsMart's extensive product catalog. The company said the broad assortment of products, purchased at wholesale cost, would expand Aaron's existing value proposition of low monthly payments, high approval rates, and best-in-class customer service and is expected to produce significant revenue growth opportunities.
“BrandsMart has been part of my family for over 45 years, and I am incredibly proud of our team and the success of the company we have built together,” said president and CEO Michael Perlman. “I am confident that the combined organization will benefit from our complementary strengths and will deliver growth opportunities and even greater value to our customers, employees and suppliers."