The Atlanta Journal-Constitution
Monday, September 15, 2008
A Warren Buffett-controlled company has bought a division of Aaron Rents, the Atlanta-based rent-to-own business.
Aarons sold its corporate furnishings division to Fairfax, Va.-based CORT Business Services Corporation. CORT is a subsidiary of Wesco Financial, which is 80 percent owned by Berkshire Hathaway, Buffett?s $118 billion holding company.
The rent-to-rent? division rented residential furnishings to companies relocating staff.
Gil Danielson, Aaron?s chief financial officer, said in an interview that the division had ?very little growth? compared to the rent-to-own division. ?It just wasn?t our core business,? he said.
Aaron?s rent-to-rent business, with 47 stores and several in Atlanta, had revenues of $99 million in fiscal 2007.
CORT will pay $72 million for the division, subject to adjustments and payment for accounts receivable, Danielson said. He expects the deal, which was approved by Aaron?s board of directors, to close in the next few months.
CORT, according to Hoover?s, had estimated sales of $171 million in 2007 and employs 2,400 people.
� Rachel Tobin Ramos
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