The company has not disclosed any financial terms of the deal.
With this acquisition, Aaron's wants to expand its HomeSmart concept. Therefore, in the coming months, it will convert 29 stores of Crusader into HomeSmart. Currently, the company has relatively few HomeSmart stores. The remaining store will be merged into an existing Aaron's store.
Earlier, in its fiscal 2011 guidance, the company targeted new store growth for both the company-operated and franchised stores in the range of 5% – 9%.
Headquartered in Houston, HomeSmart is a subsidiary of Aaron's and operates in South and Southwest regions of the United States. Stores under HomeSmart have plans such as weekly payment and six months interest free plans, which provide more flexibility and affordable purchasing options to the customers.
Cleveland, Tennessee, based Crusader Rent to Own operates its stores in Georgia, Virginia, North Carolina, South Carolina and Tennessee and has always focused on customer service. The company provides flexibility and affordable purchasing options to customers with plans such as weekly and monthly payment plans and 90-day same as cash plan.
Aaron's is a rent-to-own operator in the United States and has a low price provider strategy. The company is involved in the rental and specialty retailing of consumer electronics, residential and office furniture, household appliances, and accessories. Currently, the company operates over 1,860 stores in 48 states of the United States and Canada.
Aaron's, which competes with Rent-A-Center Inc. (NasdaqGS:RCII - News), currently holds a Zacks #3 Rank, implying a short-term 'Hold' rating on the stock. The company retains a long-term 'Neutral' recommendation.
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