Katapult, The Aaron's Company, and CCF Holdings to Combine in All-Stock Transaction

Core Viewpoint - Katapult Holdings, Inc. has announced a definitive agreement to merge with The Aaron's Company, Inc. and CCF Holdings LLC in an all-stock transaction, aiming to create a premier omni-channel platform for non-prime consumers, enhancing growth potential and financial solutions [1][2][3]. Strategic and Financial Rationale - The merger will create a trusted platform for non-prime consumers to access durable goods and innovative financial solutions tailored to their needs [3]. - The combined company will establish a scaled omni-channel business with approximately 3,000 retail touchpoints and leading digital capabilities [3]. - The financial profile of the combined entity is projected to include over $4 billion in pro forma LTM revenue and approximately $450 million in pro forma LTM Adjusted EBITDA, supporting long-term double-digit Adjusted EBITDA margin potential [3]. - The merger is expected to unlock significant synergies, including enhanced underwriting capabilities and operating efficiencies [3]. Leadership and Governance - The combined company will continue to operate under the Katapult brand, headquartered in Atlanta, Georgia, with Cory Miller as CEO and Russell Falkenstein as CFO [7]. - The board of directors will consist of nine members, including Kyle Hanson as Executive Chair, with a majority being independent [8]. Transaction Details - Upon closing, current Katapult stockholders will own 6% of the combined company, with Aaron's and CCF Holdings stakeholders owning the remainder [5]. - The transaction is expected to close in the first half of 2026, pending stockholder and regulatory approvals [5].