The company on Tuesday announced it has terminated a deal to be acquired by affiliates of Vintage Capital Management after the private equity firm didn’t extend the deal’s deadline. The agreement had allowed Rent-A-Center and Vintage Capital to extend the end date of the plan of the merger to March 17. Rent-A-Center also opted not to extend the end date.
Vintage Capital is the controlling shareholder of one of Rent-A-Center’s biggest competitors, Buddy’s Home Furnishings. The deal, which was announced in June and approved by shareholders in September, was valued at about $1.37 billion including debt.
Rent-A-Center said that, in light of its current financial and operational performance, it decided not to extend the end date of the deal, and instead exercised its right to end the agreement. The company notified Vintage of Vintage's obligation to pay a "reverse breakup fee" of $126.5 million within three business days.
Rent-A-Center owns and operates approximately 2,350 stores in the United States, Mexico, Canada and Puerto Rico, and approximately 1,200 Acceptance Now kiosk locations in the United States and Puerto Rico.