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Vintage Capital to buy Rent-A-Center for $1.36bn

RBR Staff Writer Published 19 June 2018

Vintage Rodeo Parent, a subsidiary of Vintage Capital Management, has agreed to acquire Rent-A-Center for about $1.36bn.

Rent-A-Center owns and operates over 3,000 stores in 50 states, Washington, D.C., Canada, and Puerto Rico. 

As per the agreement, Vintage Rodeo Parent will be paying $15 per share to acquire Rent-A-Center.

The transaction is expected to be completed by the end of this year, subject to customary approval and approval from regulatory authorities.

The board of Rent-A-Center has approved the takeover and has also recommended its shareholders to vote in favour of the transaction.

Upon completion of the transaction, the company will be a privately-held company from a publicly traded company.

Vintage Capital managing member and founder and Buddy’s Home Furnishings board of members chairman Brian Kahn stated that the combination of Rent-A-Center, Buddy’s and Vintage offers better opportunity to use resources and expertise to enhance value and to create a leader in the rent-to-own industry.

Rent-A-Center CEO Mitch Fadel said: “The Rent-A-Center Board, having just completed a comprehensive review of strategic and financial alternatives in consultation with outside legal and financial advisors, unanimously supports this transaction and is confident it maximizes value for stockholders while delivering a significant and immediate cash premium.

“Today’s exciting announcement reflects the significant progress we have made to materially improve our performance and would not have been possible without the hard work and focus of our talented co-workers over the last several months.

“Vintage is a natural partner for Rent-A-Center given its deep knowledge of the rent-to-own industry, and we look forward to partnering with them to realize the full benefits of the transaction."

Rent-A-Center offers customers with products ranging from consumer electronics, appliances, computers, furniture and accessories, under flexible rental purchase agreements with no long-term obligation. 

Image: Sunset Esplanade in Hillsboro, Oregon. Photo: Courtesy of M.O. Stevens/Wikipedia.org.