Brandsmart, based in Fort Lauderdale, Florida, operates 10 retail stores in Florida and Georgia. The company offers an assortment of hundreds of name brands across thousands of different items, including large and small appliances, consumer electronics, computers, furniture and home goods.
Aarons engages in direct-to-consumer sales and lease ownership of furniture, appliances, consumer electronics and accessories, with roughly 1,300 company-operated and franchised stores in 47 states and Canada. The company also operates its e-commerce business at Aarons.com.
"This is an exciting day as we welcome the BrandsMart team to the Aaron's family,” Douglas Lindsay, CEO of Aaron's, said in a statement. “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.”
The $230 million deal is a cash transaction. 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, the company said.
The deal comes at a time when Americans are spending more on their homes. Influenced by the COVID-19 pandemic, consumers are investing in home decor and home improvement, including appliances. In fact, some appliances are in short supply as a result of pandemic infrastructure factors and high demand.