Lease-to-own furniture leader and manufacturer agrees to acquisition

A sectional and chair set from Woodhaven, which is a manufacturing division of Aaron's Company Inc. Aarons recently agreed to be acquired. 

Photo By Woodhaven Industries

ATLANTA — The Aaron's Company Inc., a company primarily known for its lease-to-own, omnichannel business, has entered into a definitive agreement to be acquired by IQVentures Holdings LLC for $10.10 per share in cash, or an enterprise value of approximately $504 million. 

In addition to the rental and leasing business, the company does operate a furniture manufacturing division, Woodhaven Industries, which is listed in the FDMC 300 annual ranking. The residential furniture  company ranks #100. The non-retail sales revenue, which was used for Woodhaven's furniture manufacturing analysis, accounted for 4.5% of the company's overall revenue total. The remaining results included: non-retail, $96.710; retail, $620.665; lease revenue & fees, $1,399.514; and, franchise royalties was $23.001, for a total of $2,139.890.

The sales price represents a premium of 34.0% over the Company's closing share price of $7.54 on June 14, 2024, and a premium of 35.6% over the Company's 90-day volume-weighted average share price.

"We are pleased to announce this transaction with IQVentures, which delivers significant and immediate value to our shareholders," said John W. Robinson III, chairman of the board of The Aaron's Company. "While we have performed well in a challenging operating environment, our Board has consistently evaluated the Company's standalone plan against other strategic opportunities, including recently engaging with a range of potential partners. With the assistance of our financial and legal advisors, the Board conducted a thorough review of our strategic options and ultimately determined that a sale to IQVentures represented the best way to maximize shareholder value."

"We believe that IQVentures' resources and financial services expertise will help the Company achieve its long-term potential," said Douglas Lindsay, CEO of The Aaron's Company. "Together with IQVentures, The Aaron's Company will be better positioned to accelerate its omni-channel strategy and operational efficiency initiatives, all while continuing to enhance our customers' lives by providing easy access to high quality products through affordable lease and retail purchase options."

IQVentures President Cory Miller stated, "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. 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." 

The transaction was unanimously approved by the Board of Directors of The Aaron's Company and is expected to close by the end of the year, subject to shareholder approval, regulatory approval and other customary closing conditions. The transaction is not subject to a financing condition.
Upon completion of the transaction, The Aaron's Company will become a privately held company. Following the closing of the transaction, it is expected that The Aaron's Company will continue to operate under its existing brand names and will maintain its headquarters in Atlanta.

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