Private equity firm makes ‘best and final’ bid for Rent-A-Center
Vintage Capital Management has upped its offer for Rent-A-Center.
Rent-A-Center confirmed it has received a proposal from the Florida-based private equity firm to acquire all outstanding shares of the rent-to-own retailer for $14.00 per share in cash. Last fall, Vintage made a $13.00 a share offer to acquire the company.
“As we have communicated on numerous occasions, we are committed to completing an acquisition of RCII as quickly as possible,” Vintage Capital stated, adding that its offer, which is described as its “best and final,” expires at 5 p.m. on June 15.
Rent-A-Center said its board, with the assistance of outside financial and legal advisors, is reviewing the Vintage offer “to determine the course of action that is in the best interest of the company and all its stockholders.”
“As previously announced, the board is prepared to enter into a transaction that it believes will achieve its objectives of maximizing value for stockholders and providing certainty of closing,” Rent-A-Center stated.
Rent-A-Center on Sunday said it had completed its strategic review process and had not received any proposals that met its objectives for a sale. Hours later, it issued another statement in which it said it had received an increased offer to buy the company from a previous bidder. But the retailer said the letter didn’t include financial commitment details for how a purchase would happen.
Rent-A-Center has been under pressure to go private from activist hedge fund Engaged Capital, which gained three seats on the company’s board last June.
Rent-A-Center owns and operates approximately 2,400 stores in the United States, Mexico, Canada and Puerto Rico, and approximately 1,250 Acceptance Now kiosk locations in the United States and Puerto Rico. Rent-A-Center Franchising International, a wholly owned subsidiary of the company, is a national franchiser of approximately 250 rent-to-own stores operating under the trade names of “Rent-A-Center,” “ColorTyme,” and “RimTyme.”
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