Aaron’s to Acquire BrandsMart U.S.A. for $230 Million

by Katie Lee

Atlanta — The Aaron’s Company, Inc., a leading technology-enabled, omnichannel provider of lease-to-own and purchase solutions, has entered into a definitive agreement to acquire BrandsMart U.S.A. Total consideration is approximately $230 million in cash, subject to certain closing adjustments, and the transaction is expected to close in the second quarter of 2022.

Founded in 1977, BrandsMart is one of the leading appliance and consumer electronics retailers in the southeastern United States with 10 stores in Florida and Georgia and anw e-commerce presence on www.brandsmartusa.com. For the 12 months ended December 25, 2021, BrandsMart generated revenues of $757 million and adjusted EBITDA of $46 million.

“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. 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. Importantly, we believe the acquisition of BrandsMart will expand our addressable market and create an additional platform for accelerated growth,” says Douglas Lindsay, CEO of Aaron’s.

“We are excited to welcome BrandsMart to the Aaron’s family. We look forward to partnering with their experienced management team to expand the BrandsMart footprint, and we believe that the consolidated business can deliver strong revenue and double-digit annual adjusted EBITDA growth over the next 5 years and beyond,” Lindsay says.

“I am proud to share the momentous news that BrandsMart is joining the Aaron’s family of companies,” adds Michael Perlman, BrandsMart’s president and chief executive officer. “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. 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.”

Upon closing of the transaction, the BrandsMart business will report to Aaron’s president, Steve Olsen, and continue to be headquartered in Fort Lauderdale, Fla.

Aaron’s will acquire 100% of the outstanding equity interests of Interbond Corporation of America, which does business as BrandsMart U.S.A., from the Perlman family for consideration at closing of $230 million in cash, subject to certain post-closing adjustments.

BofA Securities, Inc. is acting as financial advisor to Aaron’s and Jones Day is acting as legal advisor. Cassel Salpeter & Co., LLC is acting as financial advisor to BrandsMart and Cooley LLP is acting as legal advisor.

Headquartered in Atlanta, The Aaron’s Company, Inc. is a leading omnichannel provider of lease-to-own and purchase solutions. Aaron’s engages in direct-to-consumer sales and lease ownership of furniture, home 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, www.Aarons.com. For more information, visit www.investor.aarons.com.




SOURCE: The Aaron’s Company, Inc.

You may also like