Atlanta-based rent-to-own giant Aaron’s said Monday it is selling its tire rental division RIMCO to competitor Rent-A-Wheel/Rent-A-Tire for an undisclosed sum.
“We feel that the sale of RIMCO will be positive for both Aaron’s and Rent-A-Wheel /Rent-A-Tire,” Aaron’s chairman and president Ron Allen said in a release. “RIMCO was a small part of Aaron’s business, with annual revenues of approximately $20 million, and this divesture will enable us to further focus efforts on improving the financial performance of our Aaron’s and HomeSmart stores.”
Aaron’s initially launched RIMCO in 2004 for drivers interested in trendy wheels, such as rims. But later the company saw growth opportunities in rent-to-own tires. RIMCO operates 32 company-owned or franchised stores in 11 states.
The acquisition will give Los Angeles-based Rent-A-Wheel/Rent-A-Tire 123 stores in 15 states. Rent-A-Wheel/Rent-A-Tire plans to continue operating RIMCO stores and retain a majority of its employees, Aaron’s said in its release.
“We are happy for the physical expansion but even more excited to add the RIMCO employees to our team,” Rent-A-Wheel/Rent-A-Tire president and partner Matt Seaburn said Monday.
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