Aaron Rents, Inc. Acquires Rosey Rentals; Second Largest Franchisee
Atlanta, // PRNewswire-FirstCall // -- Aaron Rents, Inc. (NYSE: RNT), the nation's leader in the sales and lease ownership, specialty retailing and rental of residential and office furniture, consumer electronics and home appliances and accessories, today announced that it has acquired in a cash transaction all the stores of Rosey Rentals, L. P., a franchisee since 2003. Rosey Rentals operated 35 Aaron's Sales & Lease Ownership franchised stores in six southeastern states with total annual revenues of approximately $45 million. The stores will now be Company-operated.
"As in the past, we continue to make acquisitions of franchisees when it is of mutual benefit," said Robert C. Loudermilk, Jr., President and Chief Executive Officer of Aaron Rents. "Rosey Rentals has been a good franchisee and we hope to continue our relationship in some form in the future. This transaction should add approximately 3% to our top line growth in 2009 and is expected to be accretive to earnings."
Aaron Rents, Inc., based in Atlanta, currently has more than 1,535 Company-operated and franchised stores in 48 states and Canada. The Company's MacTavish Furniture Industries division manufactured approximately $73 million at cost of furniture and bedding at 12 facilities in five states in 2007. The entire production of MacTavish is for shipment to Aaron Rents stores.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release regarding Aaron Rents, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include factors such as changes in general economic conditions, competition, pricing, customer demand and other issues, and the risks and uncertainties discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007. Statements in this release that are "forward-looking" include without limitation Aaron Rents' projected revenues and earnings for future periods.
SOURCE Aaron Rents, Inc.