ALRENCO ACQUIRES SEVEN RENTAL STORES; IN AGREEMENT FOR AN ADDITIONAL FIVE STORES.NEW ALBANY New Albany, city (1990 pop. 36,322), seat of Floyd co., S Ind., near the falls of the Ohio River opposite Louisville, Ky.; inc. 1819. The city was a shipbuilding center in the 19th cent., and the riverboats Robert E. Lee and Eclipse were built there. , Ind.--(BUSINESS WIRE)--June 11, 1996--Alrenco, Inc. (Nasdaq/NM: RNCO), an operator of rental-purchase stores in the Southeast and Midwest, today announced the purchase of seven rental-purchase stores from Royce, Inc. in northern Illinois For the university, see Northern Illinois University Northern Illinois is a region generally covering the northern third of the U.S. state of Illinois. Economics , marking the Company's initial entry into the Illinois market. The acquisition was a cash transaction. With this purchase, Alrenco increased its number of stores to 94 in 14 states. Alrenco also announced that it has signed letters of intent to acquire three stores in Indianapolis and two stores in Atlanta. Both transactions are expected to close by the end of the month. Bud Holladay, Alrenco's chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said, "The Illinois stores are profitable and had 1995 sales of approximately $1.5 million. With an immediate infusion of new merchandise and advertising, we would expect to increase both sales and net income from these stores. This is an exciting acquisition for Alrenco because the market is densely populated pop·u·late tr.v. pop·u·lat·ed, pop·u·lat·ing, pop·u·lates 1. To supply with inhabitants, as by colonization; people. 2. and underdeveloped by the former owners. We believe the outstanding locations of the stores, the current level of sales activity, and our operational philosophy will create the growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. that we have demonstrated throughout our operations. "We have acquired 28 stores in 1996 and have letters of intent for an additional five stores. We remain extremely optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the opportunities we have to acquire well-managed stores for our portfolio." Alrenco, headquartered in New Albany, offers high quality, brand-name consumer merchandise under flexible rental-purchase agreements, also known as rent-to-own agreements. Alrenco completed its initial public offering on January 23, 1996. CONTACT: Alrenco, Inc., New Albany Raymond C. Holladay or Theodore H. Wilson, 812/949-3370 |
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