Vintage Rodeo Parent, an affiliate of Vintage Capital Management, will acquire all outstanding shares of Rent-A-Center common stock for $15 per share in cash.
The transaction, which is not subject to a financing condition, is expected to close by the end of 2018 and is subject to customary closing conditions including the receipt of stockholder and regulatory approvals. The transaction represents a total consideration of about $1.37 billion, including net debt.
The retailer’s board has unanimously approved the transaction and recommends that stockholders vote in favor of it. Upon completion of the transaction, Rent-A-Center will become a privately held company, and its common shares will no longer be listed on any public market.
“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,” said Mitch Fadel, Rent-A-Center CEO. “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.”
Brian Kahn, managing member and founder of Vintage Capital and board chairman of Buddy’s Newco, of which it is controlling shareholder, said, “We have long admired Rent-A-Center and are pleased to have reached this agreement to expand our rent-to-own portfolio. 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.”