easyhome Ltd. Acquires 14 Stores from Rent A Center
MISSISSAUGA, ONTARIO - (Marketwired - July 13, 2015) - easyhome Ltd. (TSX:EH) ("easyhome" or the "Company"), the Canadian leader in providing goods and financial services to the cash and credit constrained consumer today announced the acquisition of 14 Canadian stores operated by Rent-A-Center, Inc., a U.S. based merchandise leasing company (the "Transaction").
The Transaction is consistent with easyhome's strategic goal of improving the profitability of its leasing business and solidifies the Company's leadership position in the consumer leasing business in Canada. Since most of the acquired stores are located in markets already served by easyhome, there is an opportunity to gain greater efficiencies by merging the newly acquired stores with existing easyhome Leasing stores into a single location. This will be accomplished over the next several weeks while ensuring a seamless and positive transition for the affected customers. After this consolidation is completed, the Transaction will result in three additional easyhome Leasing stores bringing the overall store count to 188 including corporately owned and franchised easyhome Leasing locations.
"We are excited by the opportunity to acquire the additional operations and customers from Rent-A-Center," said David Ingram, easyhome's President & CEO. "The acquired locations provide us with a large portfolio of assets and customer agreements. We welcome these customers to easyhome and will provide them with the excellent level of service that they expect and deserve. The proximity of these acquired locations to our existing stores also provides us with an opportunity to gain further efficiencies leading to better overall results."
As part of the transaction easyhome sold two of its remaining U.S. franchised locations whose financial results were consolidated for financial statement purposes to Rent-A-Center. Rent-A-Center also acquired one U.S. easyhome franchised store directly from the franchisee. The parties also agreed upon a three year non-compete whereby Rent-A-Center will not open any stores in Canada and easyhome Ltd. will not open any stores in the U.S. The net purchase price for the Transaction was C$3.4 million.
easyhome Ltd. is the Canadian leader in providing goods and financial services to the cash and credit constrained consumer. easyhome Ltd. serves its customers through two key operating divisions, easyhome Leasing and easyfinancial. easyhome Leasing is Canada's largest merchandise leasing Company, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. easyfinancial is a leading provider of consumer loans as an alternative to traditional banks and payday lenders.
easyhome Ltd. is listed on the TSX under the symbol 'EH'. For more information, visit www.easyhome.ca.
President and Chief Executive Officer
Executive Vice President and Chief Financial Officer