BrandsMart U.S.A. has been acquired by lease-to-own retailer Aaron’s.
BrandsMart USA has a new owner.
Lease-to-own company Aaron's has completed its previously acquisition of appliance and consumer electronics retailer BrandsMart U.S.A. for $230 million in cash plus customary closing adjustments. The deal was first announced in February.
"This is an exciting day as we welcome the BrandsMart team to the Aaron's family,” said Douglas Lindsay, CEO, Aaron's. “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.”
Lindsay said he believes that the consolidated business can deliver strong revenue and double-digit annual adjusted EBITDA growth during the next five years and beyond.
“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 stated when the deal was first announced.
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.
Based in Atlanta, Aarons operates approximately 1,300 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform.
BrandsMart U.S.A, based in Fort Lauderdale, Fla., has 10 retail stores in Florida and Georgia and a growing e-commerce presence.