Aaron’s, Inc. announced on Wednesday, July 29, 2020, that it intends to separate into two separate public companies: Progressive Leasing (Progressive) and Aaron’s, Inc. (Aaron’s). The separation is planned to be a tax-free spin-off for current shareholders and is expected to be completed by the end of 2020.
“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,” said President and Chief Executive Officer of Aaron’s, Inc., John Robinson.
Progressive will be composed of Aaron’s current Progressive business segment, as well as Vive Financial. The new Aaron’s will consist of the 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.
Within the separation, current executive roles have been repositioned to meet the needs of each segment. The current roles for the transition are as follows:
- John Robinson, President and Chief Executive Officer of the current Aaron’s, Inc., will continue in his current role and will oversee the separation. After the transition, he is expected to serve as Chairman of the new Aaron’s business segment.
- Douglas Lindsay, President of the current Aaron’s, will become Chief Executive Officer of the new Aaron’s business segment.
- Steve Olsen, Chief Operating Officer of the new Aaron’s, will become President of the Aaron’s business segment.
- Steve Michaels, the current Aaron’s Chief Financial Officer and President of Strategic Operations has been appointed as Chief Executive Officer of the Progressive Leasing business segment.
- Blake Wakefield, President and Chief Revenue Officer of Progressive Leasing, will continue to serve in that capacity.
- Ray Robinson, who currently serves as the current Aaron’s Chairman, is expected to serve as Chairman of the Progressive Leasing segment following the separation.
“I am pleased to have Steve and Douglas lead Progressive and Aaron’s to ensure the continued innovation, growth, and value creation of these two great businesses,” said Robinson. “I look forward to working with them as we complete the separation and continuing to work with Douglas in my role as Chairman of Aaron’s after the separation.”
The additional management team and board member appointments for both companies will be announced soon. Goldman Sachs & Co. LLC is acting as financial advisor and King & Spalding LLP is acting as a legal advisor during the transition.