The Client
Founded in 1955, The Aaron’s Company, Inc. (Aaron’s) has been a pioneer in the lease-to-own industry, providing customers with affordable and flexible options to own furniture, electronics, appliances, and other essential household items. In 2022, Aaron’s strategically expanded its market presence through the acquisition of BrandsMart U.S.A., a leading appliance and consumer electronics retailer. With a network of over 1,200 company-operated and franchised stores across the U.S. and Canada, plus a robust e-commerce platform, Aaron’s has enabled millions of customers to access high-quality products without the burden of traditional credit constraints.
The Challenge
Aaron’s, a publicly traded company, was undergoing a complex take-private acquisition, a transaction requiring meticulous structuring to ensure a smooth transition from public to private ownership. The deal aimed to strike a balance between maximizing shareholder value and equipping the company with the financial flexibility needed to drive future growth and innovation.
This high-stakes acquisition demanded a tailored financing solution that was not only flexible but also aligned with stringent execution timelines. The transaction involved multiple stakeholders—including company leadership, financial sponsors, and legal and advisory teams—all requiring seamless coordination to meet critical deadlines.
The Solution
To facilitate this intricate transaction, Second Avenue Capital Partners (SACP) developed a customized lending solution designed to meet Aaron’s specific financial and operational needs. Our expertise in structuring flexible and innovative capital solutions allowed us to address the unique challenges of the acquisition, ensuring a smooth transition while preserving the company’s strategic growth objectives.
Key aspects of our approach included:
- Tailored Financing Structure: We crafted a lending solution that provided the necessary liquidity to support the acquisition while maintaining financial stability for future expansion.
- Seamless Collaboration: Our team worked closely with company management, the financial sponsor, and advisory professionals to navigate the complexities of the transaction. This ensured that all stakeholders were aligned and that the execution was both efficient and precise.
- Speed & Precision: Given the stringent timeline, we leveraged our deep industry expertise and agile execution capabilities to meet all critical deadlines without compromising the integrity of the deal.
- Strategic Growth Support: Beyond financing the transaction, SACP’s solution positioned Aaron’s for long-term success by ensuring the capital structure allowed for continued investment in innovation, customer experience, and market expansion.
Through this partnership, SACP delivered on its commitment, successfully supporting Aaron’s transformation into a privately held entity while equipping the company with the financial agility to drive future growth.
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About Second Avenue Capital Partners – Second Avenue Capital Partners, LLC, a Schottenstein Affiliate, specializes in asset-based loans for the broader retail and consumer products industry. Serving middle-market companies, SACP leverages the experience of retail operators, product merchants, and lenders to deliver customized capital solutions. A unique merchant perspective allows SACP to recognize and unlock value in assets other capital providers often overlook or do not understand. The firm’s tailored financial solutions are a vital resource for clients seeking capital to effectuate strategy and achieve financial objectives. Learn more at sacp.com.