This acquisition gives us a launching pad to the Southeast and brings us one step closer to our plan of developing every major market from coast to coast.
John Bowlin, Co-Founder and Co-CEO, Rent-A-Tire

Rent-A-Tire Profile: -58 stores -400 plus employees -Average store revenue: $1.3 million -Units sold/rented per month: 40,000 -2008 Projected Revenue: $90 million

California based Rent-A-Tire, the countries largest independently owned Rent to Own custom wheel and tire company, has acquired Rent-A-Wheel of Florida. Rent-A-Wheel operates 10 locations - eight in Florida and two in Georgia.

The acquisition was completed January 24th for an undisclosed sum and brings Rent-A-Tire's store count to 58 company owned stores from California to Florida. And the company has plans to fill in the gaps.

"The purchase of Rent A Wheel of Florida and Georgia gives us much more then just 10 stores," said Rent-A-Tire Co-Founder and Co-CEO John Bowlin. "It gives us a launching pad to the Southeast and brings us one step closer to our plan of developing every major market from coast to coast."

Co-Founder and Co-CEO Don Sabino said the company will focus on new store openings and acquisitions. "We have been very successful in the Southwest and will continue to expand there. However, to meet our goal of adding 20 new stores per year, we will look to new markets and explore more acquisitions."

"2008 will be another banner year for us," said Partner and CFO Matt Seaburn. "We will have over 70 company owned stores and approximately $90 million in revenue." Rent-A-Tire employs over 400 people.

Seaburn explained that, with size comes some interesting supply challenges. "We will sell well over 40,000 units per month this year and approach 60,000 units per month next year," he said. "To ensure supply consistency we'll need to explore larger vendor relationships and manufacturing options."

Rent-A-Tire added 12 stores in 2007 and has clear plans to grow to over 100 stores in the next two years.

While careful not to give away the farm, Seaburn said that there are fundamental differences in the way Rent-A-Tire does business - From the buying power of 60 locations running the same program to thoroughly developing individual markets.

Seaburn said that, despite popular belief, a company needs a few dozen stores in an isolated market be competitive.

Getting into the custom wheel Rent to Own business requires a tremendous amount of capital. Seaburn says many traditional RTO operators are shocked at the amount of capital required.

Rent-A-Tire has no plans to franchise. Preferring instead to grow a tightly controlled operation. Rent-A-Tire stores average more than $1.3 million in annual revenue, well above stores in other systems. What's the secret? "Its the secret sauce," Seaburn adds with a laugh. Well capitalized and managed, Rent A Tire seems poised to maintain their industry leading position.