Schottenstein affiliate Second Avenue Capital Partners (“SACP”) announced it is serving as Administrative Agent on a $120,000,000 Senior Secured Revolving Line of Credit for The Aaron’s Company, Inc., an industry leader in lease-to-own and purchase solutions for furniture, consumer electronics, home appliances, and more. The new asset-based credit facility, provided by SACP along with Pathlight Capital LP, is a critical component of the broader financing package arranged to support the take-private acquisition of Aaron’s by IQVentures Holdings, LLC, a leading fintech sponsor.
Founded in 1955, Aaron’s has been at the forefront of the lease-to-own industry, providing affordable and flexible options for customers to own furniture, electronics, appliances, and other essential household items. With the acquisition of BrandsMart U.S.A. in 2022, Aaron’s enhanced their store footprint with a leading appliance and consumer electronics retailer. From a network of more than 1,200 company-operated and franchised stores across the United States and Canada, plus a robust e-commerce platform, Aaron’s has helped millions of customers gain access to high-quality products without the burden of traditional credit constraints.
“The Aaron’s acquisition was a highly structured transaction, with a dual focus on delivering value to the previous shareholders while positioning the Company to accelerate growth and innovation for the benefit of Aaron’s customers,” said Cory Miller, President of IQVentures. “To achieve this, we needed a financing partner who understood the nuances of the deal and had the capability and commitment to see it through. SACP proved to be exactly that partner, delivering on their promises and supporting our vision for the future of the Company.”
Michael Russell, Managing Director of SACP, spearheaded the underwriting for this credit facility and emphasized that it was a collective effort to close the transaction successfully. “SACP is known for handling complex transactions quickly and efficiently, and we’re proud of our ability to work seamlessly with our deal partners,” Russell noted. “From the dedicated Aaron’s leadership team, to the professionals at IQVentures, as well as the legal and financial advisors and financing partners, closing the Aaron’s acquisition was truly a collaborative effort.”
The transaction represents SACP’s commitment to providing creative and customized lending solutions to companies across various industries. Partnering with IQVentures and Aaron’s underscores SACP’s dedication to supporting established businesses that offer unique and necessary services to their customers.
“As a firm focused on fostering growth for our clients, we are excited to help usher Aaron’s into this new phase of the Company’s transformation,” said SACP’s Managing Director, Michael Sullivan. “We’re proud of our track record helping companies like Aaron’s access the capital they need to execute their strategic initiatives and continue serving their customers. Our data-driven team adapts to changing deal conditions while ensuring reliable execution every time.”