Featured Company News - Aaron's Acquires its Largest Franchisee
Research Desk Line-up: TAL Education Post Earnings Coverage
LONDON, UK / ACCESSWIRE / July 31, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Aaron's, Inc. (NYSE: AAN), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=AAN. The Company announced on July 28, 2017, that it has acquired all the assets of SEI/Aaron's, Inc. ("SEI"), its largest franchisee, for approximately $140 million in an all-cash deal. For this deal, Aaron's is expected to use its cash on hand. The transaction has a meaningful potential for revenue growth and is expected to be accretive to earnings in 2017. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Discover more of our free reports coverage from other companies within the Rental & Leasing Services industry. Pro-TD has currently selected TAL Education Group (NYSE: TAL) for due-diligence and potential coverage as the Company announced on July 27, 2017, its unaudited financial results for Q1 FY18 which ended on May 31, 2017. Tune into our site to register for a free membership, and be among the early birds that get our report on TAL Education when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AAN; also brushing on TAL. Go directly to your stock of interest and access today's free coverage at:
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Acquisition of High-Performing Stores in Important Geographic Markets
This deal is consistent with Aaron's strategy of acquiring high-performing stores in attractive geographic markets. For instance, Aaron's expects to extend its presence in highly attractive markets by acquiring SEI. SEI currently serves more than 90,000 customers through 104 Aaron's stores in 11 states, primarily in the Northeast. SEI was founded in 1995 and has built an outstanding business in the last 22 years. SEI has steadily been one of the Aaron's top performing franchisees.
Aaron's will get Access to SEI's Experienced Leadership
John Robinson, Chief Executive Officer of Aaron's expressed his excitement on bringing the SEI team and stores into Aaron's' organization. He also shared how SEI's founder Charles Smithgall, CEO Chas Smithgall, and President and COO, Dave Edwards, have built an exceptional business, with a profound leadership team and strong profitability over the last 22 years. Douglas Lindsay, President of the Aaron's Business also announced that he was pleased that Dave Edwards, who has led SEI's operations for about 15 years, would be joining the Aaron's team.
On the other hand, Dave Edwards exclaimed that SEI has been a proud and successful part of the Aaron's family for over 20 years. He acknowledged Aaron's extraordinary culture and long history of providing customers access to quality products for their homes and families. He is hopeful that the legacy that SEI and Aaron have built together would continue as the organization executes on its long-term strategy.
Potential for Revenue and Cost Synergies
As a result of this acquisition, Aaron's omni-channel platform would benefit from added scale. Also, Aaron's existing competitive advantages combined with SEI's best-in-class operating strategies would create considerable opportunities for revenue and cost improvement.
Moreover, the acquisition will also enhance Aaron's ability to drive inventory supply-chain synergies between the Aaron's Business and Progressive Leasing in markets that SEI currently serves. This will lead to higher margins and profitability.
About Aaron's, Inc.
Aaron's, headquartered in Atlanta, is a leading omni-channel provider of lease-purchase solutions. The Company engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances, and accessories through more than 1,770 Company-operated and franchised stores in 47 states and Canada as well as its e-commerce platform, Aarons.com.
Last Close Stock Review
At the closing bell, on Friday, July 28, 2017, Aaron's' stock surged 17.04%, ending the trading session at $47.54. A total volume of 3.97 million shares have exchanged hands, which was higher than the 3-month average volume of 791.35 thousand shares. The Company's stock price skyrocketed 32.28% in the last three months, 55.66% in the past six months, and 116.58% in the previous twelve months. Moreover, the stock soared 48.61% since the start of the year. The stock is trading at a PE ratio of 24.22 and has a dividend yield of 0.23%. The stock currently has a market cap of $2.87 billion.
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