National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Vintage Takes Rent-A-Center Private in $1.4B Deal
An affiliate of Vintage Capital Management will acquire all outstanding shares of Rent-A-Center in an all-cash deal valued at $15 per share. The deal is expected to close by the end of 2018, and is valued at $1.365 billion, including net debt.
The Rent-A-Center acquisition is complementary to Vintage’s existing ownership of Buddy’s Home Furnishings, a rent-to-own operator and franchisor. “We believe that the combination of Rent-A-Center, Buddy’s and Vintage is a compelling opportunity to utilize our resources and expertise to enhance value and create a leader in the rent-to-own industry,” said Vintage founder Brian R. Kahn.
Rent-A-Center’s board initiated a strategic review last October. The review concluded earlier this month with the finding that “the execution of our strategic plan remains the best opportunity to deliver value to our stockholders, compared to the alternatives available to us,” board chairman J.V. Lentell said on June 10.
When the Vintage buyout offer came through a few days later, Rent-A-Center CEO Mitch Fadel said the board “unanimously supports this transaction, and is confident it maximizes value for stockholders while delivering a significant and immediate cash premium.”
Rent-A-Center owns and operates approximately 2,400 stores in the U.S., Mexico, Canada and Puerto Rico, and approximately 1,250 Acceptance Now kiosk locations in the U.S. and Puerto Rico. It franchises another 250 retail locations.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
