Aaron’s intends to separate into two independent, publicly-traded companies: Progressive Leasing and the Aaron’s Business.
“I’m proud that we have built two strong businesses, both of which are well-positioned for long-term success as independent companies,” said John Robinson, president and CEO of Aaron’s. “The board and management team believe that separating Progressive and Aaron’s will enhance long-term shareholder value and is the next logical step in the evolution of our organization.”
With approximately $2.2 billion of revenue in 2019, Progressive will be comprised of the company’s current Progressive business segment as well as Vive Financial. With approximately $1.8 billion of revenue in 2019, Aaron’s will be comprised of approximately 1,400 company-operated and franchised stores in 47 U.S. states and Canada, the e-commerce platform Aarons.com, and Woodhaven Furniture Industries.
Steve Michaels, the company’s chief financial officer and president of strategic operations, has been appointed CEO of the company’s Progressive Leasing business segment, effective July 31, succeeding Ryan Woodley. Also, effective July 31, Douglas Lindsay, president of the company’s Aaron’s Business segment, will become CEO of the Aaron’s Business, and Steve Olsen, currently chief operating officer, will become president of the Aaron’s Business.
Robinson will continue in his current role and will oversee the separation. He is expected to depart from his day-to-day role at the company upon completing the separation or December 31, 2020, and is expected to serve as chairman of Aaron’s. The transaction is expected to be completed by the end of 2020, subject to customary closing conditions, including final approval from the company’s board of directors.