The Aaron’s Company has completed a previously announced deal to take the company private.
In a Thursday announcement, the lease-to-own home goods retailer said fintech business IQVentures Holdings has acquired the company for an enterprise value of $504 million. The deal was first announced on June 17.
“By combining our expertise and resources with IQVentures', we will be better positioned to accelerate our omnichannel strategy and enhance our operational efficiency, building on the momentum of our ongoing transformation over the past several years,” Aaron’s CEO Douglas Lindsay said in a statement.
Aaron’s in June said its board of directors unanimously approved the deal, which was not subject to financing conditions. Upon completion of the deal, Aaron's stock ceased trading on Thursday and the company was delisted from the New York Stock Exchange.
IQVentures acquires businesses focused on data science, generative AI, fintech and payments, according to its website.
“We admire The Aaron's Company's industry-leading position, and we look forward to applying our knowledge and resources to better serve its customers,” IQVentures President Cory Miller said in a June statement. “Douglas and his team have transformed the company over the past few years, and we are excited to build on that transformation and work together to continue evolving and growing the business.”
Aaron’s performance had been soft recently. The company’s full-year revenue for 2023 fell nearly 5% to $2.14 billion. For the most recent quarter ending June 30, Aaron’s reported revenues of $503 million, down 5.1% from $530 million the prior year. The company posted a net loss of nearly $12 million for Q2.
In contrast, Upbound Group, which owns rival lease-to-own retailer Rent-A-Center, reported about $1.08 billion in total revenue, a nearly 10% year-over-year increase, and $34 million in net earnings for Q2. Upbound also owns Home Choice and a number of other rent-to-own related brands.
Founded in 1955, Atlanta-based Aaron's had been publicly traded since 1982. The retailer offers leasing and purchasing of appliances, electronics, furniture and other home goods. In addition to its namesake banner, the company’s portfolio includes BrandsMart U.S.A., BrandsMart Leasing and Woodhaven, a furniture manufacturing division. Overall, the company operated 1,210 owned and franchised stores in 47 states and Canada as of this month.