Aaron Rents sells corporate furnishings unit for $72mln

Furniture renter Aaron Rents Inc agreed to sell its corporate furnishings unit to privately held rival CORT Business Services Corp for about $72 million, in an attempt to focus on Aaron's sales & lease ownership unit.

Atlanta-based Aaron, which also rents and sells consumer electronics, computers and household appliances, said it does not expect any significant gain or loss on the sale and reaffirmed its profit outlook for the third quarter and fiscal year 2008.

"The residential rent-to-rent business...for many years has not had the same growth rate or prospects of our fast growing and highly successful Aaron's sales & lease ownership division," Aaron Rents CEO Robert Loudermilk Jr. said in a statement.

Aaron's corporate furnishings division, which accounts for about 6 percent of the company's consolidated revenue, recorded $99 million in revenue for the fiscal year ended Dec. 31, 2007 and currently operates 47 stores.

As part of the deal, the company will retain certain liabilities of its corporate furnishings business, including its accounts payable and accrued expenses.

The sale is expected to close by the end of 2008.

(Reporting by Dhanya Skariachan in Bangalore; Editing by Jarshad Kakkrakandy) Keywords: AARONRENTS/ Please write your own byline and save in your preferences vj

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