ATLANTA (Jan. 20, 2014) — Rent-to-own specialist Aaron's Inc. is selling the assets of its Rimco tire and wheel leasing business, comprising 32 company-operated and franchised stores in 11 states, to Rent-A-Wheel/Rent-A-Tire.
Financial terms of the deal were not disclosed. The Rimco business generated about $20 million annually, Aaron's said.
“We feel that the sale of Rimco will be positive for both Aaron's and Rent-A-Wheel/Rent-A-Tire,” said Ronald Allen, Aaron's chairman, president and CEO.
“Rimco was a small part of Aaron's business,…and this divesture will enable us to further focus efforts on improving the financial performance of our Aaron's and HomeSmart stores.”
Los Angeles-based Rent-A-Wheel/Rent-A-Tire will now have 123 stores in 15 states. Aaron's said. Rent-A-Wheel/Rent-A-Tire plans to continue to operate all the acquired Rimco stores and retain a majority of its employees.
“We are happy for the physical expansion but even more excited to add the Rimco employees to our team,” said Matt Seaburn, president and partner of Rent-A-Wheel/Rent-A-Tire. “Our constraint to growth has been finding key talent. This acquisition adds strength to our ranks that will help the company to accelerate growth.”
Rent-A-Wheel last year outlined plans to expand its network beyond the 100-outlet mark, building on the popularity of renting and/or delaying payments for tires and wheels.
Aaron's launched the Rimco concept in 2005, saying at that time it hoped build a national custom wheel and rim chain.