Rent-A-Center buys privately held The Rental Store

BANGALORE (BestGrowthStock) – Rent-A-Center Inc (RCII.O: ) said it acquired privately-owned The Rental Store Inc for $75.5 million, in a deal that will add 145 kiosk locations to the furniture and appliance rental company’s current base.

Rent-A-Center expects the deal for The Rental Store (TRS) to add $100 million in revenue and $15 million in operating income next year.

The Plano, Texas-based company said it acquired TRS on a debt-free basis, using part of the purchase price to pay off all existing debt. The deal was primarily funded with cash on hand, the company said in a statement.

The company also sold a majority of its customer accounts for its financial services business at nearly 207 locations.

The financial services that Rent-A-Center offers include, short-term loans, debit cards, check cashing and money transfer services.

On October 25, the company had said it was seeking strategic alternatives for the financial services business, including a possible sale.

Rent-A-Center and smaller rival Aaron’s Inc (AAN.N: ) are the largest companies in the $6.3 billion-a-year U.S. rent-to-own industry. They allow customers to own products they have rented after completing all payments over an agreed term.

Rent-A-Center operates about 3,000 company-owned stores in the United States, Canada, Puerto Rico and Mexico.

(Reporting by Viraj Nair in Bangalore; Editing by Unnikrishnan Nair)

Rent-A-Center buys privately held The Rental Store